Managing a company is more than simply “running” the business. It's about having a vision for the future, knowing where you are and where you intend to go, taking small steps, but always moving towards a more profitable and competitive situation. On this journey, adopting a management model that is suitable for your company's profile or that promotes a true transformation in the way things are done is essential for you to have ways to plan, control, and coordinate actions so that they generate more and better results. For this reason, in today's article, we will discuss four management models that can contribute to the effective improvement of your business, bringing benefits such as increased productivity, engagement, and profitability to your company.
BSC: Balance Scorecard
Best known in the market and with thousands of companies as adherents, the BSC is a management methodology that prioritizes company competitiveness by dividing it into four main perspectives: financial, customers (internal and external), processes, and organizational knowledge. Each of these perspectives is broken down into objectives and goals that serve to guide the company's actions. To ensure that objectives are being met, performance indicators are identified to measure the organization's performance across all perspectives. .
The efficient implementation of the Balanced Scorecard in your company depends on a thorough understanding of your business's current scenario and fostering transparent communication at all organizational levels, aiming to give meaning to each employee's actions in achieving the company's global objectives, as listed in the strategic plan.
GPD – Management by Objectives
An interesting management methodology that involves absolutely all company employees is GPD, or Management by Hoshin. In this methodology, business objectives are established, and from there, guidelines are defined for each hierarchical level of the organization, reaching down to the operational level. The main objective of GPD is to implement a results-oriented culture in the company, where each employee knows the impact of their actions on the whole and contributes to the results according to their role.
When implementing OKRs in your company, you generate greater employee engagement, as they feel as responsible for the company's objectives as management does. It also facilitates the identification of management failures and allows them to be corrected in a short period of time, since OKR planning is done in 12-month cycles.
OKR – Objectives and Key Results
To know if your management is effective, the best thing to do is measure the results, and the OKR methodology is based precisely on this premise. By developing a results-oriented culture, the OKR methodology establishes secondary objectives that support business objectives, directing the team towards the execution of strategic activities.
Unlike other management methodologies, OKRs involve all employees in identifying objectives, which increases the feeling of greater engagement with the company. With goals and indicators negotiated with management instead of imposed, the team feels more committed to the results, improving the company's overall performance.
VBM – Value-Based Management
Generating value for the business is undoubtedly one of every entrepreneur's primary goals, but it's not always clear how to motivate employees to pursue this objective. The VBM methodology is a way to achieve this culture within the company, as it is based on meritocracy. Managers who generate more value for the company are rewarded with percentages of this value, which positions everyone as potential internal competitors.
It's obvious that value can be generated for an organization in various ways, but in the VBM model, a manager's success is measured by the financial indicators they generate, such as profitability, return on investment (ROI), and economic value added (EVA).
As you can see, none of the management methodologies presented is complete, as each focuses on a specific aspect of the business. However, to keep your company more competitive and aligned with market demands, it is possible to combine two or more of these management methodologies to achieve a complete and results-oriented management system.
