What types of management theories and principles can help you to improve efficiency in your business?

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Answered by: Steve, An Expert in the Management Basics Category
Effective Management

Managing a business, a project or a team, calls for a lot of work and dedication. But apart from anything else, any manager needs to know how to utilize resources in an optimal way, so as to improve efficiency. For a business to be successful and remain competitive, there are two key principles that need to be seen to - efficiency and effectiveness. In more simple terms, a manager needs to come up with ways that will reduce waste, so as to improve the way things are done and improve the efficiency of the various processes he or she is managing. Waste does not only mean waste in terms of expired raw materials. Obviously such waste needs to be avoided so as to reduce costs. But it also means that it is imperative to use time well by allocating it properly.

Certain processes can be optimized, that is, their various stages can be reduced. In such a way less time is utilized until the final product or service is produced or delivered. In such a way a business would not only be utilizing its resources more efficiently and effectively, but it will also be reducing costs, increasing profits, and delivering more value from the customers' point of view.

This is what Lean management is all about. And from this simple explanation it is evident that this philosophy can radically change the way your business operates. Besides the principle of lean management, there is another concept that should also be given importance in order to have effective management. This is Agile management, a rather recent management principle, that can also give a manager a valuable insight to the way things can be improved in business processes. With the rapid rate of change, and the continuous improvements in the world of technology, it has become critical for a business to make the most out of custom built software. This helps to improve the lead time and to ultimately be more efficient.

The specific needs of the business' operations, or those of a specific project, will be evaluated. The way things are done can be assessed, and any problems or deficiencies can be duly addressed. The need to evolve quickly is important. Likewise, the business needs to respond properly in an attempt to adapt to any changes so as to improve. When evaluating a problem, the principle of agile management proposes techniques such as prototypes and story maps to help in the assessment process. Then, by means of regular testing, the source of the problem will be found. Afterwards, through teamwork and collaboration, a new way of doing things to solve that particular problems can be found and implemented. All this will help to improve efficiency.

By taking into account the key aspects highlighted by these management theories and principles, one will be able to manage more effectively. Efficiency and effectiveness are very important for the success of a business, and that is why Agile management and lean management theories and principles are being used by many managers nowadays.

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