Tradeindia Exim Newsletter, May 29, 2012

Exim Newsletter,May 29, 2012

CEO's Note

Just 'walk around': Give it a try

If you run a small enterprise, it's not easy at all to blanket all the costs, particularly while establishing or expanding your business. You may have to dip into your pockets, run from pillar to post for loans, and still struggle to keep your head above water. That's why resources must be used wisely. Most small firms never miss this point as far as their financial resources are concerned, but when it comes to human resources many fail to make the best use of their employees in order to minimize cost.

Here, I think management by walking around (MBWA) can be a very useful strategy. Small business owners may find it too costly to hire specialized managers for every department, and this in turn requires them to actively engage themselves in day-to-day business activities, often by establishing interpersonal contacts with the employees -- the very idea on which MBWA is primarily based.

Theoretically, MBWA refers to a style of business management that involves the owner or managers wandering around, in an unstructured manner, and at random through the workplace. The objective is to keep a finger on the pulse of the organization to check employees and the status of their work. Introduced in a 1982 book "In Search of Excellence", of course, it's an old idea, but I think it's still relevant even in today's world of business where information can move at the speed of light.

So, why should you bother to regularly tour your office building or the warehouse! Firstly, it's because you're doing the job of a few managers, or at least saving a few valuable bucks by doing that. Secondly, by actively engaging yourself in the day-to-day activities of your business, you can get yourself aware of what is going on. Thirdly, as you go out yourself, you step over the communication barriers that stand between you and your people. No filters, no sugar-coating and you can see the reality.

Having said that my point is that there's nothing to lose and much to gain a small business owner can hope by practising MBWA. But a note of caution: the concept shouldn't be applied to spy on your employees but as an opportunity to observe, see problems up close, and listen to suggestions. Neither it's merely about letting others see you walking around — you must be honest with yourself. And finally, be friendly and don't rush it — it will take time to get the employees talking about what's actually going on. Start with everyday questions only, and then move forward.

Management by walking around still makes sense for today's businesses, especially small enterprises because it is cost-effective, easy to administer, and its benefits are proven. At the heart of it should be a mental exercise to communicate directly with employees, make them feel appreciated, motivate them, and uncover the hidden problems. It's worth giving MBWA a try.

Discuss the Editorial

Other Newsletters

News you can't miss

»	Textile firms seek govt intervention to stop job losses, closure

»	Panel calls for separate textile policy for northeast

»	Exporters expect more procedural simplifications in FTP

»	G20 Young Entrepreneur Summit: 25 young Indians to take part

»	'No impact of rupee slide on Indian banks'

»	India Inc feeling heat of rising dollar: ASSOCHAM survey

»	'Achieving exports of $350 bn this fiscal quite challenging'

»	India calls for stronger ties with resurgent Africa

»	High inflation affected PC sales in India: Gartner

»	100 more NSDC centres to push skill development

»	Slash interest rates to save economy: FIEO

»	'Rollback of petrol hike only if crude prices fall'

»	Sugar exports may be allowed up to 2.5 mn tonnes

»	Rupee disaster: FIEO concerned about MSME exporters

»	Amid woes, Pranab boasts about Indian economy's 'resilience'

»	Falling rupee, widening trade gap a serious issue: Sharma

More Headlines

Govt. Announcements of the Week

India, Myanmar embark on expanding trade

India and Myanmar have "embarked on a new journey of bilateral cooperation", Prime...

Rupee's fall due to national, global factors: Pranab

Union Finance Minister Pranab Mukherjee Sunday...

Interview of the Week

'B2B marketing best suited to needs of SMEs'

Business-to-Business (B2B) marketing is best suited to the needs of Small and medium enterprises (SMEs). Tie-ups with big brands, join hands with them...it is the time for being interdependent, winner of several National Awards, Chairman of Ricela Group, A. R. Sharma told SME Times...