The SMETAN engineering Management Model

From the Methodology to the Result

The specific problem is that those whose detailed knowledge could dominate the technical position of a company – the experts – seldom possess the comprehensive perspective necessary to fully exploit the latent potential of that knowledge. On the other hand, because of the nature of their work, those charged with guiding the entire enterprise – the executive managers – are too far removed from practical operations to be qualified to evaluate the individual details. That is why with good reason, I dedicated my work as management consultant to resolve this dilemma.



The Mechanism of Operational Business Management

Mechanism of operational business management

The effective parameters of operational business management are the people, the machine, the market and the management. These parameters form the vertices of an isosceles pyramid, but they function only through indirect interaction, and their
impulses must achieve efficiency across numerous hierarchical levels!

 

I like to employ the image of an isosceles pyramid to clarify my understanding of the mutual dependencies within a business.  Neglecting share-holder-value, which recently plays more in the foreground of entrepreneurial activity, having been targeted by the financial sector, then the prevailing parameters of an operational business management are the market, the people, the equipment and the management! 

 
The management or, more precisely, the control of this system becomes effective through impulses that must be conveyed across the hierarchical levels.  Therefore, robust processes must be selected! Initially, the foremost task of management is to position the business on the market.  Then, as already stated so aptly by Peter Drucker, “the purpose of a business is to create a customer!” and nothing else. And then, above all, it is essential in a modern world to lead employees by convincing them.


The machinery, equipment and processes should be standardized as much as possible in order to have the necessary flexibility to adapt to market requirements. And then comes, from my point of view, one of the most decisive issues, which is that people must be ambitious for the market, by which business groups primarily fail who produce and market mutually substitutional products and mutually substitutional processes. 


An additional point is the favorable placement of a company’s capacities in the market.  Once you run after orders with idle capacities, then it’s a rough ride to business success. And here, unseen in the background, the people and machines combine the process of “Continuous Improvement”.

 

I am convinced that if a business has these 4 vertices and the complimentary 6 processes under control, then lasting success is only a question of “when“ and no longer a question of “whether“!


It is important with this approach to maintain the viewpoint that the effective parameters of these processes are effective not indirectly but rather directly through interactive impulses that must be imparted across the various hierarchical levels.  Acceptance strengthens this impulse, skepticism weakens it. The only individual businessman, who has direct influence on all three parameters, is, for example, an artisan who sells his wares on the street.  Or a street musician; when nothing falls into his hat, he simply plays other songs.


Do we not all often believe that we, as executives in our businesses, could also operate under the same conditions?

 

From my collaboration with “malik management“ and “CPO Management Consultants“ I gained insights as a practitioner of management discipline, that I specifically utilize as a management consultant in order to improve the long-term performance of a business. Finally, to build the bridge from the methodology to the result. In the end, only the result convinces, and this is more reliably achieved with a skillful systematic approach than with what is often attempted, namely a purely intuitive one.


From my point of view, the economist and sociologist Professor Gunnar Heinsohn gets to the heart of the matter when he says that businessmen must defend the immaterial worth of their business through innovations on the material side, there where goods and processes are revolutionized.  At the same time, this provides, through productivity gains, the overcapacities that inevitably lead to the shake-out of the poorer ones.

 

“Simply being better is enough“ in order to not fall victim to this shake-out. “The market is a tough, asocial employer, who will even dismiss the most faithful servants without notice and without compensation“ if the business fails, says Peter Drucker on the subject.   


“Where there are doves, so doves fly there!“ says an old-fashioned saying.  That means that the few lucky ones among you who sit in a warm market niche will soon receive uninvited guests.  


There is, then, a proactive need for action as long as you can still act. SMETAN engineering analyzes, together with you and its partners, where the sides of your pyramid are too short, and which measures will lead you back onto the path of sustainable business success.


Herbert Smetan


Mechanism of operational business management complete


 

 

„One best seeks revenge on ones enemies by becoming better than them“

 

Diogenes von Sinope

 

 

 

„I know everything,

only not myself.“

 

Francois Villon

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