Management is an essential element for the sustainable development of companies and organizations.
In order to develop human resources and achieve established goals, many organizations require employees to acquire the abilities and skills necessary for management.
This time, we will explain the basic meaning and role of management, and KPI management, which is management from a marketing perspective.
What is management?
Management means “management” or “management,” and management in business refers to the management and operation of an organization.
There are various definitions of management, but the most widely known and generally recognized definition is said to have originated from the book “Management” (published in 1973) by American management scholar PF Drucker, who is known as the father of modern management. Masu.
Speaking of PF Drucker, it became a hot topic in 2009 when he published “What if a Female High School Baseball Manager Read Drucker’s “Management””, and many of you may have read it.
Drucker’s definition of management
In his book, Drucker defines management as “the tools, functions, and institutions that help organizations achieve results.”
Specifically, management is the effective use of an organization’s resources, such as people, goods, money, and information, in order to achieve the goals set by the organization.
Drucker also defines a manager as someone who is responsible for the results of an organization.
Why management is needed
In recent years, due to the diversification of work styles, people of different ages, careers, and values are working toward the same goal within the same organization.
Even if each member proceeds with their work based on their own experience and values, there will be no cohesion as an organization, and results will not be produced.
By managing your team and creating a system that assigns work suited to each member’s career and personality, you can maximize the results of goal achievement and organizational development.
Management in an organization is also essential for developing human resources to maximize results.
Difference between management and leadership
“Leadership” has the same meaning as management, and is often confused with it.
Strictly speaking, management and leadership have different meanings, so please take this opportunity to remember them.
Management: Managing an organization to achieve set goals.
Leadership: Showing specific direction for achieving goals.
Management job content
Once you understand the meaning and role of management, next we will explain the job content of what management specifically does.
goal setting
Goal setting is the most important aspect of management.
Decide specifically what kind of goals the organization or team is aiming for, and share, understand, and instill them among the members.
There is a big difference in results between organizations that understand where they are going and what they need to do to get there, and those that don’t.
Furthermore, by setting “goals” and “goals” not only for the organization/team but also for each member, it is possible to properly evaluate the members.
Business management
After setting goals, we will manage the work by allocating tasks, assigning personnel, and managing schedules.
By dividing roles while taking into account each individual’s abilities and personality, each individual can make the most of their strengths and abilities.
For this reason, it is necessary to have members try out various tasks on a daily basis and understand their strengths and weaknesses.
If business management is not done properly, there will be tasks that there is no one in charge of, or time will be spent on unnecessary tasks, making it impossible to achieve goals by the set deadline.
Staying motivated
In order for an organization or team to work together towards a single goal, it is necessary to maintain the motivation of each individual.
Through communication between both the managing side (manager) and the managed side (employees/members), it is possible to eliminate concerns that they have and evaluate the current results. , we will try to maintain motivation.
When the motivation of the entire team increases, productivity increases.
Human resource development
One of the important tasks of management is to develop the human resources that make up the organization.
Human resource development cannot be completed in a short period of time, so we create medium- to long-term plans and provide appropriate work while supporting them to learn new knowledge and acquire skills.
Successful human resource development will raise the level of the entire organization and increase the value of the organization.
evaluation
The key to successful human resource development is to provide regular evaluation (feedback).
Motivation toward work changes depending on the content of the evaluation.
Appropriate evaluations allow each member to recognize their own issues and understand their position within the organization.
Type of management
Management is classified according to its role in the organization.
top management
Top management refers to the management performed by the top executives of an organization, and includes board members such as the chairman and president, as well as executive officers.
Management is primarily required to consider the company’s management policies and business strategies and decide on the direction of the organization.
It also has the role of making comprehensive decisions regarding management and taking ultimate responsibility for results.
middle management
Middle management is the ability required of so-called “middle managers” such as general managers, section managers, and branch managers.
While supporting the top management who decide on the direction of the organization, they also directly direct the lower management layer, which will be explained next, and have the role of gathering opinions from the front lines.
This position is considered to be an important one, serving as a conduit between management and the members who actually carry out the work.
lower management
Lower management consists of section managers, supervisors, team leaders, and others who direct and control the members who actually carry out the work, with the aim of realizing the vision envisioned by upper management.
One of the important roles of lower management is to listen to members’ opinions and convey them to middle and top management.
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Management in marketing
One of the management methods that many companies have adopted is management using KPIs.
KPI management”.
If you are involved in marketing or sales, KPI is probably a familiar business term.
What is KPI?
KPI is an abbreviation for Key Performance Indicator, and in Japanese it means “Key Performance Indicator”.
Simply put, it is an important indicator for measuring and evaluating the degree of goal achievement.
For example, KPIs often used in web marketing include the following items.
· Number of page views · Number of sessions · Conversion rate · Cost per customer · Repeat rate
KPIs vary depending on the purpose of the website, but KPI management is the process of quantifying and visualizing each KPI and managing the achievement rate.
Terms to remember before practicing KPI management
Understanding the meanings of terms related to KPI management will help you understand KPI management more quickly, so keep this in mind.
K.G.I.
The term KGI, which is similar to KPI and can be easily confused, is an abbreviation for Key Goal Indicator.
It refers to the numerical value of the goal that an organization ultimately aims for, such as sales, profit margin, growth rate, etc. When proceeding with KPI management, first set the KGI, and then set the KPI.
KSF
KSF (Key Success Factor) refers to the most important process for achieving the set KGI.
It is necessary to think concretely about what needs to be done to achieve KGI, so when setting up KSF, it is important to conduct a detailed analysis from both external and internal perspectives, such as the market, customers, and company’s resources. is required.
KPI management procedure
Once you understand what a KPI is, let’s take a look at the steps for KPI management.
Configure KGI
As I mentioned earlier, KGI is the ultimate goal that an organization aims for, so it is not a vague goal, but a clear goal to achieve specific results by when.
At this time, the key is to set achievable goals so that all members understand and work towards the goals.
Please be aware that setting unreasonable goals may lead to management failure.
Check the gap between KGI and reality
In many cases, there is a gap between the predicted value at the current level and the set KGI, so it is necessary to understand how large the gap is.
The fact that there is no gap means that the goal can be achieved if business is carried out as usual without any new measures being taken.
Consider measures to fill the gap
Once you understand how big of a gap there is, think about “Can that gap be filled?” and “How can you fill it?”
Configure KSF
Narrow down the most important processes among the many to achieve KGI.
Set KPIs
Based on the narrowed down KSFs, we will set KPIs that will serve as indicators for achieving the final goal.
The key here is not to set too many KPIs.
If you set multiple KPIs, you will not know which indicators to focus on, and your organization will lack a cohesive direction.
summary
We explained the roles and types of management.
In order for companies and organizations to develop significantly amid work style reforms, the diversification of the values of individual members, and the increasing complexity of the business market, it is necessary to improve management skills.
The key points of management are clear goal setting, schedule management, and appropriate evaluation.
Management is a skill that is required in various situations within an organization, such as achieving goals and developing subordinates, so learn the correct management method and contribute to the growth of the organization.