Of course you have to manage and control business. But if operations are in a mess, it is a challenge to get business on track. It is much easier if operations runs smoothly from the beginning. We all agree to this. But then, why do so many managers focus most of their efforts on daily operations? Why is the work to design an effective Management System too often neglected? I think it is because many managers do not know how to do a structured organization design. That’s why they have to use too much management to control a badly designed system.
It is not easy to run a business. You need to understand external business environment, identify a business logic, develop a value creation chain, set up structures of responsibilities and apply relevant controls. I believe most would agree that a good design of internal structures proactively minimizes risks in the operations and enables focus on the right things. All of the above elements has to be designed, not in isolation but as a whole, as a system with internal and external interaction. If you know how to do this, you can develop an effective Management System.