Top 7 Management Dilemmas
By Hans Bool
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Most managers and entrepreneurs face the same management issues. Yet the choices they make are the basis for their success. Any business is concerned with the question of productivity: what productive role fits us best and where does that put us in the economic marketplace. Once in that market arena you are confronted with others. Then it comes to a certain style in which you differentiate from the rest. It is the style of your organization that drives the performance. There are seven dilemmas you face when dealing with these topics of productivity and style. Everyone should take their own decisions on the matter. Itís all a question of finding the right balance.
- The first dilemma: Innovate or Conserve
We all discuss about the importance of innovation, that you should focus on new applications, new markets, etc. But the revenues of innovations are in the (near) future. You should also get the maximum out of your current business. If you do not invest, there comes a moment where current business declines without a new innovation to take over the revenues. If you invest too much it may endanger the continuity of current business.
- The second dilemma: Own production or Leverage on third-parties
What it the content of your business? Do you face the production by yourself or do you leverage on third parties?Internet marketplaces are good and successful examples of the last. Both require different competences however. Focussing on core business fits in this category. You concentrate on own production and what is beside your strength you might consider outsourcing to third-parties.
- The third dilemma: Support or Lead
You could choose for you business to be in the front of the market or you could be happy supporting others. There are a myriad of possibilities for each.
- The fourth dilemma: Cooperate or Compete
This dilemma is more visible within your company than from the outside although it is also present there. Many companies value teamwork, but they organize the activities in a competitive way by setting individual targets. You should balance both.
- The fifth dilemma: External or Internal focus
There are entrepreneurs that observe the market and jump in a niche when they see a possible profit. They follow each development in the market and they are flexible first-movers. Others have built up own ideas in a different way of perceiving information. This dilemma is present in any organization. Normally marketers and sales are a bit more external focussed where IT and administration for example are more focused on streamlining the activities that comes to them.
- The sixth dilemma: Product or Service
A universal choice that looks so simple. We all have an idea about this dilemma, but the implication of pursuing the one or the other can be very high.
- The last dilemma: Consumer or Company
This dilemma is less important for managers if their context is already set. The more important is it for entrepreneurs. Facing ten to twenty business clients is something else than driving 20.000 demanding consumers to your business. You should know this upfront.
© 2005 Hans Bool / Astor White
Committed to your management issues. On a distance.
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Article Submitted On: December 03, 2005