Despite today’s tough economic times, CNN money has recognized the strengths of many of today’s top businesses in their list of the 2012 World’s Most Admired Companies. These companies have what it takes to stay great through challenges, and it would be wise to follow in their footsteps when making tough management development decisions and attempting to increase overall company effectiveness.
Management Development Tips
1. Take Amazon, for example. “Unlike many other large tech companies, Amazon is comfortable sacrificing profits in the short-term for long-term gains.” Indeed, Amazon’s willingness to be so forward-thinking in its business strategies, seeing the bigger picture even in uncertain times, is one of its greatest strengths. Although Amazon’s profits are currently down as a result of their expansion efforts, their focus on seeing the bigger picture and widening their brand infrastructure at this time is certain to ensure a boom in business in the long-term.
How you can boost your management development: Step back to see the bigger picture. Encourage your employees to separate short-term interests from long-term plans. Discuss priorities and strategies that will promote long-term growth and development. Such planning is certain to improve overall company effectiveness.
2. Coke is also using this time of slow growth to reinvent their own corporate strategy. Soda sales are down industry-wide, but Coke has figured out a plan to come out on top. “The secret? Expanding the brand beyond the sugary sparkling beverages.” By diversifying their product in response to national market trends and expanding their brand overseas, Coke is able to experience growth despite the soda slump.
How you can boost your management development: Take a growth-centered point of view. Encourage your employees to think outside the box and consider innovative strategies for expansion and growth while still maintaining your core brand identity.
3. Seeing the bigger picture and focusing on growth are two effective strategies for boosting business during periods of slow economic growth, or shortly thereafter. But FedEx also has the right idea in focusing on efficiency during this crucial juncture: “FedEx continues to combat one of the main challenges to its business, the cost of fuel, by adding more efficient aircraft to its fleet.” By strategizing to increase efficiency in the short-term and the long-term, FedEx is employing an effective investment strategy that will increasingly improve their bottom line over time.
How you can boost your management development: Brainstorm with your employees and colleagues to determine possible inefficiencies or wasteful practices in your business. Make a plan to correct some of these inefficiencies in the short term in order to experience long-term gain.