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Angel Baguer, Professor of Economics and Human Resources at the School of Engineering - Tecnun, University of Navarra

Ten mistakes of the management management in times of crisis

Sun, 28 Mar 2010 07:31:33 +0000 Published in Heraldo de Aragón

Even in times of crisis, the success of a project of business depends on the leadership of the management. It does not depend on the environment or the economic situation, or other things that are the same for everyone. The price of oil fluctuates the same for everyone, inflation affects everyone, raw materials are scarce for everyone, technological changes affect everyone and crises affect everyone. Managers who constantly complain about these circumstances are bad bosses at the head of organizations of doubtful continuity.

Good managers are those who know how to deal with difficult times. Just like politicians, in good times even the most useless prevail. In good times, the results obtained cover up the shortcomings of bad managers.

When managers are immersed in a business crisis, they should ask themselves the following questions: What are the mistakes that caused the crisis? What mistakes should I not make in the crisis?

Before a crisis, the most frequent errors are:

a) Having as goal short term financial gains deadline (to reach wealth as soon as possible) forgetting to improve product and market competitiveness in the long term deadline.

b) Not understanding that Personnel Management Service is the core topic of everything, since the challenges set by the organization can only be achieved if people make them viable.

And in the midst of a crisis? The following are the ten most common mistakes of the management management:

1) Not recognizing the failures that have led to the crisis. Hiding behind the crisis does not help or solve anything. Self-examination is necessary to learn from one's own mistakes. More than ever, it is necessary to personalize the leadership adapted to what the organization needs.

2) Wanting to do more things than possible. The stress of managers leads them, in addition to the loss of health, to accept more risk than normal with clients and to carry out strategies that are not well thought out.

3) Believing that because there is a crisis, talent retention is assured. For talent there is no crisis, they will always have offers from work and will leave the organization if they do not find what they are looking for.

4) Reduce or cancel the investment in training. The way out of the crisis and the future lies in the skilled person, the organization's main asset.

5) Waiting for a way out of the crisis, believing that the solution lies in the passage of time.

6) Reduce, by eliminating costs, the strengths of business such as quality, customer service, technical attendance , image, flexibility, continuous improvement and reliability.

7) Restricting communication. In a crisis, this is more necessary than ever. Its lack gives rise to rumors, often serious, about the status of the business and its future.

8) Neglecting motivation. It is necessary to improve the main parameters of the work environment: attention, recognition, delegation, communication, degree program professional and occupational health. The leader has to promote that all are part of the same society and face the challenge to move the business forward.

9) Lack of planning with the excuse that the crisis absorbs time. If a director does not have time, it is because it does not know how to organize itself.

10) To forget, as the crisis ends, point 1.