I hope we all agree on the importance of "good communication" in our business. Make timely, useful and relevant information get where it needs to go and your business will be better… Do you doubt it?
Every day, I see good quality and bad quality information flowing into my clients' businesses, into any of the four quadrants of the company.
Do you remember the dynamics of the “broken phone”? Well, it happens every day in companies.
People listen to a part of what we wanted to say, perhaps the one that suits them or perhaps they simply don't listen.
It may also happen that, as entrepreneurs, we have been unable to find a way to correctly convey the message so that it is not misunderstood.
Have you ever said the following? "How many times do I have to repeat this to be understood?" "Could it be that I have to be the secretary to all of you so that things are done in this company?" "But do I speak Chinese?" "At what point are we going to begin to understand each other?"… and no, I'm not talking about marriage, I'm talking about business.
It is ironic; but now that the most modern technological means exist, communication is more abundant and in real time; But having Skype, WhastApp, voice messages, text messages, Mail, Voxer, FaceBook and many other means does not guarantee that this communication is of better quality.
For five years I served a very successful client, with sales of eight million dollars a year and three hundred employees, who has not wanted to learn how to use his own computer, use email, or listen to his messages on his cell phone. He has an email account for his business, but his wife who works for the company answers and writes it. It's not a joke, it's true!… and you have a company that is worth almost 25 million dollars. When I grow up, I want to be like him!
For this reason and for many other daily realities, it is that I ALWAYS recommend the implementation of the Management Committee.
What is a Management Committee?
It is a weekly meeting of NO more than two hours in which the General Manager or Owner of the company and the management or operational management: Operations, Finance, Marketing & Sales, Production, Logistics participate.
I recommend that the managers responsible for the strategic areas of the company always attend; but the company advisers, some head of a strategic area, a new department, the administrator of some branch that you want to evaluate may be invited to part or to the entire meeting.
In family businesses and SMEs, I recommend that those people who, although they do not participate in daily operations, do have an impact on decision-making, are present.
What is not a Management Committee?
It is not one nor should it intend to replace the monthly session of the Board of Directors. It is not and should not be treated as a partner meeting. It is not a strategic planning session, nor does it replace what I call in another article "The Mezzanine Technique"
Goals of the Management Committee Meeting
• Review what happened during the week that just ended: sales, treasury, particular situations with suppliers and customers, production volume, costs, personnel situations, state of facilities, machinery and equipment, etc.
• Participants present their plans for the present week, goals, commitments, expected results, situations where they require the support of their peers, resources that are required.
• Make operational decisions to achieve the desired short-term results, so that they contribute to long-term goals.
• When you have the financial statements, analyze the financial situation and the results for the month ended. This is based on what that situation and those results imply for each operating unit of the business, as well as knowing the impact and responsibility of each one in those realities.
5 elements to get the most out of the Management Committee
1. It must become a habit. You must create this weekly Management Committee meeting as an obligatory, priority and punctual participation activity. I often suggest Tuesdays or Wednesdays because enough financial and production information is available for that day to measure last week's results.
2. It must contain a protocol or sequence. Always an hour and it is timely, it is best to facilitate the transfer and participation of everyone on time. Generally, it starts with a brief motivation from the General Manager or Owner of the company. Then the Financial Manager or Director (if your company is small or medium it would be the General Accountant). Later it would follow Sales, Production, Operations and the other present divisions. Remember it is two hours, no more, therefore the times must be regulated.
3. The minutes must be sent in advance. Even if you are clear about what you will see in each meeting, someone should have the task of summarizing the previous meeting and sending it along with the minutes of the next one. Topics are added that will be discussed or situations that will be raised. This helps the participants to prepare mentally for the appointment.
4. The times of each participant must be well managed. I start with you, with the businessman: "Do not abuse your authority to monopolize the time of the meeting." Take the opportunity to listen, to watch the performance "live" of your team. Don't worry if there are heated discussions. They contribute, because they take from everyone their “true self”. How long should you participate? I suggest between 10% and 20% of the total time. It seems little; But this is a meeting where you are interested in knowing the performance of your people. Remember that you seek to form a team that is: disciplined, capable and committed people, responsible for the desired results. In passing I recommend you read this article: "How to make a profit in times of crisis".
5. The meeting should be results-oriented. The management team must be results-oriented and a testament to that effort is that the Management Committee meetings are results-oriented. In other words, each executive, manager, boss or person in charge must be clear about the expected results of the division, department or unit in charge. You should also be clear about what your talents, abilities, competencies, abilities and skills are expected to be to achieve those results.
6. Use all the tools that improve meeting performance. Of course you must put rules to respect during the meeting such as the use of cell phones and personal computers; but you may need to use PowerPoint presentations, financial reports or reports that everyone could see on their computers; but try to keep your people focused on the content of the meeting.
7. Invite experts to the session. Many decisions in the company are supported by people outside the company; but because of their position, experience or relationship with the company, they provide additional information to look at, resolve or make an important decision within the company at the operational level. You can invite consultants, legal advisers, experts on a technical topic. For these people, the time still has to be "dosed" to avoid spending more time on the account in the meeting.
To end
Implementing the Management Committee meeting is one of the first suggestions that I offer vehemently in my consultancies. There are many disadvantages for a company if it does not have a practical mechanism for the management team to approach and commit.
There are many benefits that you will have in your company and in your freedom as a manager and as an entrepreneur when implementing these weekly Management Committee sessions. Do it and then write about your experience. You will have difficulties. Some manage to implement it immediately, thanks to authority. Others will find it a little more difficult.
But do it and you will see the benefits. You will see more sales, more profit and more wealth in your business.
