Great coaches stress fundamentals—the basic skills and plays that make a team a consistent winner. Great general managers do the same thing. They know that sustained superior performance can’t be built on one-shot improvements like restructurings, massive cost reductions, or reorganizations. Sure, they’ll take such sweeping actions if they’re in a situation where that’s necessary or desirable. But their priority is avoiding that kind of situation. And they do that by focusing on the six key tasks that constitute the foundations of every general manager’s job: shaping the work environment, setting strategy, allocating resources, developing managers, building the organization, and overseeing operations.
Six Basics for General Managers
Great coaches stress fundamentals. So do successful general managers. Whatever their leadership style, they invariably focus their efforts on the six tasks that lay the foundation for effective performance—their own and that of the entire organization.
To shape the organization’s work environment, top GMs use three levers: (1) high performance standards, (2) strong business concepts, and (3) clearly defined people concepts.
The best GMs spearhead strategy formulation; they don’t just preside over it. They also allocate resources to back up the company’s strategic focus, not to prop up marginal businesses or support low-payout projects.
Developing superior managers and building a strong organization are two more critical general manager jobs. Giving periodic tough-minded performance appraisals and organizing around people, not concepts, are two key practices the best GMs follow.
Finally, successful GMs supervise operations and implementation: producing sound plans, spotting problems and opportunities early, and responding aggressively to them.
Individually, none of these tasks is new or startling. Together they’re the key to setting priorities and making the right things happen—which is what general management is all about.