BS”D
The purpose for management is execution. Execution is what turns raw “material” (like time, people, and tools) into “value” ($).
Execution can be thought of as the process of making “something” from “nothing”, or more accurately – execution is processing something from potential to actuality. This “actuality” could be a building (in a real estate project), a software product, or a financial transaction (“deal”).
Ask any VC firm what is the single most critical component of success – and they will say it execution. Even the best concepts can fail due to poor execution. It is therefore one of the most important subjects of business management.
In Kabbalah, the process of creation (of the world something from nothing) by G-d includes four stages, or four “stages” in the process from potential to spiritual to physical existence.
These four stages correspond to the four basic stages in the process of business execution:
- Actions – This is ultimately what makes things happen, “actions” include a phone call, a meeting, a writing session, coding session, brainstorming session, email, etc. The mission of management is to maximize actions properly supporting personal and team objectives. Action is the most expensive part of the process.
- Objectives – These are the “context” for the actions. The second greatest source of failure in execution is action not supporting clear objectives. Objectives need to be measurable and significantly propel us forwards, towards fulfilling our goals.
- Goals – In business, goals are usually monetary. While several objectives usually lead to a single goal ($ from Sale, $ from Investment, $ from M&A, etc. While a company or business unit has many objectives, they are usually supporting a handful of goals. A person or small team usually work towards a single goal.
- Axioms -These are the intrinsic characteristic principles of the company, team, or person. These include the “why” questions – “why we do what we do”.
Effective (personal or team) management ensures our actions “rolled up” to the achievement of clear objectives that “roll up” to the achievement of goals that fulfill our intrinsic axioms.
This model, of course, applies to every aspect of life, but we will be basing our approach to management on its application to business.