Operational Management Science
Introduction
Management Science is Critical for Organizational Growth.
Strategy is the intersection of a desired future state of the business and the action(s) designed to achieve that desired state. The success of any strategy depends upon the execution of the strategy elements, experience, knowledge, management science, effective forecasting and planning, i.e. “being able to see around the corner,” and a detailed understanding of the resources required to be able to achieve the desired organizational objectives.
The success a company has in growing and developing is a function of both strategy and tactical execution. An effective strategy reduces risk, ensures efficient use of capital and resources, and provides best-of-breed marketplace performance. What we know is: strategy is rarely successful without execution and the science that creates monitoring and validation capabilities.
While every business is unique, there are common practices that are fundamental to all successful wealth-creating businesses. Developing a clear strategic vision and a perform-based culture within the constraints of available capital resources makes owning and managing a business a real challenge. Management Science provides the “platform” to monitor and evaluate the execution aspects of the business for consistent and sustained operating results.
Management Science helps identify and provide the pragmatic data and information to overcome skill, capability, and capacity gaps. Tablero’s Management Science is an operating methodology that is widely accepted and adopted by institutional investors and successful founder/CEOs. Our Management Science enhances and develops business models while creating the decision-making framework that provides the organization (its people, managers and all constituents) with a “guidance system”.
Management Science helps overcome common poor performance issues, including:
"Trial and Error" Management: Event and Reactionary Management
Legacy Thinking that Corrupts Change Processes
Poor and Disinvestment Decisions
Resource Constraints
Non-Performance-Based Cultures
Tablero’s Management Science methodology validates your strategy through a pragmatic and information-based process, which simultaneously gathers real-time data, and sorts that data into actionable information.
Outcomes of Effective Management Science Utilization
Over our many years of experience, we have learned and observed that without a Management Science methodology and process, the following “Legacy Management” attributes have led to mediocrity or, at best, slow-growth organizations.
Some of those “Legacy Management” attributes include:
Throwing new employees at every problem
A desire to hire “only” the best-skilled new employees they find
Revenue growth exclusively through direct sales activities
Hiring direct sales personnel
Managing by emotion, events, and "gut" feel
Events and reactions dominate the day
Owners play the role of “Army Commander”
Business process development is not a priority
Attempts to duplicate what successful competitors do
Hiring Fortune 500 executives
Outspending competitors
Management Science-centric leadership outcomes include:
They create repeatable, scalable processes
Therefore, they can hire average to above-average skill because process and metrics make “B” players “A” players
They leverage a portfolio of direct sales, channel distribution, and partnerships to create sustainable and predictable revenue growth
Owners are champions, leaders, and advocates, not dictators
They empower and incentivize employees through daily performance metrics
They tie rewards to the activity and expected results (i.e. the financial performance is the "grade card.”)
They empower key employees and front-line employees to make tactical decisions
They outperform the competition based on daily activities and metrics
They create pragmatic relationships internally and externally; therefore, a performance-based culture becomes a brand equity
Functional Implementation of Management Science Routines
Tablero’s Management Science delivers strategy validation and operational execution information. The Tablero approach initiates with the Tablero professional designing and implementing a customized “Management Science System and Process,” with the objective for the company to insource the Management Science, such that it becomes internally institutionalized into our client companies.
The benefits of Management Science applied to Product Management include:
Validate new products and solutions in an economically efficient manner
Validate pricing: map price demand curves
Validate messaging by buyer type: what resonates and causes the decision to act
Assess brand rank, promise, attributes to better understand your obstacles
The benefits of Management Science on customer assets created include:
Ongoing system and infrastructure for Market Intelligence
A pipeline of opportunities, nurtured prospects, and partners
Database integrity, leveraging your greatest asset
Marketing Optimization: ensuring your marketing and sales spend is efficient, optimizing campaigns to maximize response
Operational “corrective action” information and intelligence
Client Satisfaction and service delivery drivers of success
The benefits of Management Science on Sales & Marketing activities include:
Systematically profiling your target market in order to identify those companies that match your qualification criteria and rank them as “A”, “B,” or “C” leads
Producing assets for continual use in ongoing efforts (pipeline of prospects, promotional materials)
Better understanding what drives your buyer segments, including their demographics, psychographics, buyergraphics, and infographics profiles
Determining what price they are they willing to pay
Determining what needs/priorities are unsatisfied
MANAGEMENT SCIENCE enables executives to avoid “Trial and Error Management”.
Implementing Management Science Routines for Revenue Growth
The key revenue generation of Management Science is real-time pathways (connections) with online communities, analysts, competitors, strategic partners, and potential and current clients. The only way to stay ahead of the competition is to gather as much significant and prioritized information as possible.
Your strategic objectives can only be attained to their full potential by deploying ongoing Intelligence Routines, which will help you:
Compete and secure your market position
Grow sales and clients
Enforce business integrity by managing risks
Advance clients’ acceptance and adoption of your core business value proposition
Satisfy escalating client expectations
Leverage today's most advanced analytics
Act upon data information and intelligence to understand and be proactive to changing market dynamics.
Managing risks enhances marketplace performance. Moreover, intelligence should be used to create scenario modeling and predictive analytics such that leadership can predict the future for each buyer segment, customer or other marketplace dynamics.
With intelligence tied to modeling and predictive analytics, the business learns from its cumulative experiences and can take the “most appropriate” timely actions.
For all functional areas, Management Science can be a “Magic Bullet” for Executives.
Question: How do I plan for tomorrow and near-term objective attainment?
Answer. Implement Management Science.
Technology, regulations, and client demographics are constantly changing the marketplace; therefore, it is imperative that your organization adapt, change or the risk of failure is prevalent. Management Science “tools” effectively prepare the organization for the future.
Management Science Creates Enterprise Value
Effective Management Science equips managers and leaders with actionable information to lead, direct, and manage the execution aspects of your business, resulting in increased shareholder wealth.
Monthly reporting package compares actuals to forecast for the top eight to 12 metrics and/or goals for each department, function, and team.
Spending, hires, incentives, and other management decisions are based on realized performance against budget of key performance indicators.
Market, Customer, and Competitor Intelligence research is conducted and analyzed routinely.
The Customer Revenue Waterfall is actively managed against the Customer Lifecycle and a portfolio of recurring solutions, products, projects, and services.
A Portfolio of revenue sources generates definable predictable revenue growth.
Joint Ventures and Alliances contribute to the performance, brand, and "franchise". Performance evaluation and monitoring is not just for internal organizations.
Strategic Partnerships and Technology Partnerships contribute to the performance, brand, and "franchise".
The resulting Brand Equities & Customer “Raving Fans” contribute to new client acquisition, revenue growth, scalability and the "franchise".
Reporting and Governance to achieve wealth and growth objectives are highly defined and documented.
Each employee has Role Clarity and a clear definition of contributions and success.