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The real test of a leader is how well he manages the many moving components of his business. It can be equated with juggling. Every leader has different strengths and weaknesses, and managing everything is seldom easy. However, if you master the following skills and money management techniques, you will have a head start in your business, with your team, and in life.
The cost of not improving as a leader can be significant. It is estimated that 32% of turnover is due to management problems. Top that with money management problems and you have a ton of business problems. Use the tips below to upgrade your management style.
1. Find personal alignment before speaking to co-workers and team members.
We all worked with this one person or had this one boss who constantly changes his mind about what he actually wants – for the overall strategy of the company, the colors in the new brochure or how meetings should run. Over time, their indecision changes how we see them. Instead of becoming the leader of the pack, it became easier than ever to write them off as inconsistent.
Yuri Kruman offers compelling advice on how to assert yourself and prepare for the way you perform at work and in life in his book, Be Your Own Commander in Chief. Kruman is an award-winning chief people officer who specializes in what millennials really want in the workplace. In his book he talks about the "four pillars of mastery of conversation".
The whole concept is that all conversations you have must be aligned – conversations with others, conversations with your body (your health and well-being), conversations with yourself and with Gd, the universe or your spiritual Connection." Explained Kruman. “But very few people focus on all four at the same time, which leads to crises. You will be far more effective as a leader if you have all four conversations consistently – and your team will respect you all the more for it. "
Related: Humble Leadership: 5 Dimensions for a New Style of Human Resource Management
2. Monitor business spend on the ROI scale.
The past year has been hugely difficult for many companies, which means unnecessary expenses were the first to start. Now that life is back to normal, it may be worth another look at your business expenses. You may be reducing too much and spending more money on recruiting new contractors, employees, or virtual assistants to keep your business functioning again. Or maybe you've spent too much preparing for the unknown.
For each issue on your list, calculate the ROI. This shouldn't be a mere consideration, "Yes, we need this, let's leave it." ROI means maximizing the return on investment you get. For example, if you've consistently used a PR agency and the ROI is great, try working out the numbers for that new PR intern who might be of help as well. Much of this is a guess, but the best managers know how their money is being spent and will spend a dollar to the best of their ability.
3. Think of your team members as you think of pawns.
Each team member you work with has their own ROI – and that depends on how they maximize their talents and skills. An article in the Harvard Business Review by Marcus Buckingham entitled What Great Managers Do equates people management with a game of chess. No two employees are alike. Everyone has their own strengths and weaknesses, how best to learn, how to be most motivated, and how to work with and inspire the rest of the team.
"In chess, each type of piece moves differently, and you can't play if you don't know how each piece moves," writes Buckingham. “More importantly, you won't win if you don't think carefully about how to move the parts. Great managers know and appreciate the unique skills and even eccentricity of their employees and learn how best to integrate them into a coordinated plan of attack. “Take the time to get to know your employees and how they work together so you really understand how to manage them for their greatest happiness and overall success of the company.
Related: The Truth About Money Management
4. Address underlying blocks of money or issues in your perception of money.
The way you view money as the manager of your company is unduly affecting your company's cash flow. What many managers don't acknowledge is how much it does – and it doesn't matter how much money goes into and out of your company, but how you view that money. Chad Willardson is the author of Stress Free Money: Overcome These Seven Obstacles to Finding Financial Freedom. Here's how to make your money work for you, and how to see money.
"Making money work for you is one of the most powerful ways to make friends with money," explains Willardson. “We're used to looking at money from the perspective of lack, but the truth is that there are many ways you can gain financial freedom while also clearing your money mind. Money can be used neutrally, far from the dangers of guilt or greed. "
As you revise your view of money, you can make financial decisions, evaluate products and services, and set salaries and benefits for your employees.
Any of these powerful techniques can change the course of running your business for the better. Remember, business is about people and business is done for the sake of money. If you manage both, you win.