Question

choose the heuristics that relate to the structure of an organization

Answer 1

Management heuristics

Direct

· Manage the things that are in your control - take note of things starting to deviate from the plan.

· Swift and decisive decision making.

· Respond swiftly to problems.

· Don't shift blame. Deal with and focus on resolving the situation.

Prioritize

· Use proper, accurate KPIs.

· Plan/ consider capacity. Don't over-commit. Leave cushion for agility.

· Manage time; don't over-commit.

· Manage your capacity (time) to think.

· Make sure that you work on the most important thing at all times, don't simply be busy.

· Allow priorities to arise naturally, incorporate them into plans and schedules.

· Deal with work as it arrives, don't postpone anything.

· Priority categories: urgency, relevance, flexibility, potential. Priority according to task nature or type, e.g. operational tasks vs development tasks.

Plan

· Understand seasonality and trends.

Schedule

· Proper project management and planning.

· Break down activities, assign tasks/ sub-tasks.

· Break down long or complex tasks, allocate resources accordingly.

· Proper, clear task allocation; check on progress and quality.

· Monitor tasks: The team leader should monitor tasks.

· Plan and spread resources according to priority and need.

· Deal with work as it arrives. Don't postpone anything – any work. Sort out work as it arrives.

· Keep a loose schedule: Don't predetermine most of the tasks in terms of timelines.

· Allocate and reallocate tasks and resources as new tasks and problems arise.

· Optimize the processes of task allocation and task prioritization.

· Quickly and frequently re-evaluate and reassign task schedules.

Capacity

· Examine capacity, and the capacity required, and decide on the best approach.

· Empower your staff - upskill when necessary.

· Acquire the necessary expertise.

Communicate

· Open and regular communication ensures everyone is on same page, and prevents complacency and familiarity.

Delegate

· Capacity and capacity planning enable the entrepreneur to delegate.

· The entrepreneur must delegate, to improve/ increase capacity.

· The entrepreneur who doesn't distribute leadership and management prevents employees from giving their best.

· Assign tasks based on where the organization is heading.

· Evaluate whether your position warrants the work you are doing, or whether you should not rather delegate it.

· Delegate, communicate, get feedback and evaluate.

Risk

· Know your risk profile and propensity.

· Risk is specific to the task or project.

· Analyze the market and the risk.

· Take risks/ chances.

· You can't avoid risk; take on a healthy portion of risk.

· Take risks, but make smart bets.

· Establish the risk you are able to take on. Only make mistakes you can afford to lose and recover from. Build and improve as you go.

· Manage your risk. Ensure the business can handle the risk. Have a tabled risk plan.

· Diversify so that income doesn't come from one source.

Culture and morale

· Build good culture, morale, and ethics.

· Create a culture of responsibility and accountability.

· Avoid complacency, by creating urgency and challenges.

· Create challenges through goals, assign accountability and responsibility to each department.

Comprehension

· Be informed. Know your business. Work on gut feel, and then get data to support it.

· Have support when making key decisions.

· Think holistically.

· Leverage off collected data.

Profitability

· Ensure each unit contributes positively (to profit), and is profitable.

· Keep an eye on expenses.

· Minimize operational costs, e.g. buy stock strategically.

Perspective

· Maintain perspective. Don't get stuck in detail. See the big(ger) picture.

Structure, organize, systematize

· Formalize thinking.

· Streamline the processes, output, and governance of the business.

· Use systems to ease resource requirements and increase efficiency.

· Run the business on reliable systems, and train employees on these systems.

· Put down some kind of system (create a play book). Don't run things from memory or the top of your head.

· Have pre-packaged ways to deliver services, solutions, and solve problems.

· If unstructured, put systems in place to help bring/ restore order.

· Evaluate, assess and refine processes – each process must positively contribute to value.

· Work processes should have a quick return.

· Delineate a broad framework, but don't get bogged down.

· In areas or cases without systems, or new development, form an understanding of what needs to be done.

· Keep it simple. Encourage ownership of the process. Get buy-in.

· Look at the constraints and optimize. Find the best trade-off/ solution.

· Combine the best way vs the practical – the way the employee is most likely and capable of using it.

· Use process maps. Map complicated processes.

· Inputs and processes determine the outcomes.

Leadership, direction, mastery

· Self-management.

· Become an efficient leader.

· The entrepreneur must be good at delegating, leading, coordinating and task allocation.

· Transparent, honest, flexible, diverse, foresight, communicator.

· Don't micro-manage, view time as a scarce resource.

· The entrepreneur should be an autocrat, more than a democrat.

· Leadership: open and approachable.

· Open door policy – available and approachable for advice.

· Don't spoon feed, and don't give blank cheques either. Put up boundaries and perimeters.

· Don't become complacent with time. Guard against stop listening, paying attention, improving, changing, etc., as you become more successful.

· Have a support network or structure to help during difficult times.

· Have a mechanism to deal with stress.

· Important for the entrepreneur to look after his health, well-being (emotional and mental). Deal with emotions.

Human Resources heuristics

Recruitment, staff

· People are the core of what the business is doing.

· Hire the right employees; people can sink your business.

· Focus on the recruiting process. Have all the screening, checks, references and questioning in place.

· First employ on probation, and monitor if the candidate lives up to expectations and fits in.

· Take in a lot of applications, filter according to required skills, and assess applicants to get a sense of them. Get input from the whole team. Make sure you know what you are getting.

· Audition top candidates, test their abilities, and determine if the team can work with them.

· Have stringent tests, but go on gut feeling when determining if the person is going to be a good fit.

· Look at attitude, knowledge and education.

· Consider ability to overcome, learn, and contribute.

· Know where to find skills.

· Offer apprenticeships.

Productivity

· (Productivity managed through) a combination of remuneration, performance monitoring and appraisal, motivation, encouragement, coaching, and training.

· Evaluate performance and keep people accountable.

· Incentivize: When staff lack initiative, they must be managed.

· Flexibility should not reduce output, keep output constant.

Flexibility

· Many entrepreneurs are limited in number of employees - fewer than 5. The entrepreneur is usually the sum of the business' skills, and acquires the necessary skills and expertise himself. The entrepreneur is flexible by default.

· People can ‘quickly' and temporary come together to rally around an objective.

· Shadowing.

· Train and cross-train, so that employees are flexible and have the necessary skills.

Capacity

· Keep it lean; only a few core staff – use temporary/ flexible labour when needed.

Reward and recognition

· Give everyone a chance (instigate accountability and responsibility); show favour to those who are efficient.

· Have transparent incentive programs so that people produce and perform to receive - have reason to work and perform.

· Make sure staff evaluation and appraisal are fair and objective, and not subject to their immediate managers.

Structure and hierarchy

· Use a flat(ter) hierarchy – increase people's share of the pie.

· Follow an agile structure.

· Lean structure.

Culture

· Allow people to fail.

· Create a space for employees to be creative.

· Infuse different thinking and diversity into the organization.

Support and empowerment

· Empower people. Don't stand in their way. Think of their growth. Make room for people to advance.

· Make sure people can deliver on expectations.

· Ensure employees are comfortable asking for help and support.

· The entrepreneur leads by example – staff must be able to think, understand and work like/ with the entrepreneur.

Training and development

· Skills aren't permanent, they must be continuously updated and acquired.

Communication

· Regular team meetings to communicate and share goals and values.

Team work

· Encourage collaboration, team work and a family culture.

· Incentivize team work.

· (Consider potential negative consequences of monitoring or broadcasting team performance - team players may expect a corresponding increase in remuneration, with an increase in team performance.)