The keys to managing and leading people and firms in the new age

Story by: Monique Senekal
Editing by: Francis Mdlongwa

Consultative and empathetic leadership, forging alliances to create economies of scale and of scope, embracing innovation, being communicative and balancing value creation for customers are emerging as key success factors of effective management in the digital age.

Modern management theory concurs with the new role of a human resources manager: to be proactive in managing change in an organisation. More and more, these managers need to act as strategists and contribute to the financial bottom line.

In the digital age, the modern HR manager needs to understand that the people of an organisation could be a key source of competitive advantage. As such, he/she needs to recruit, retain and retrain only the most talented people to ensure strategic management.

However, many top managers of companies who still follow traditionalist business models, even in change management, still prefer to maintain their control over subordinates and often dumb down any form of creativity. In addition, many executives supervising HR managers don’t see the need for drastic change either.

This is where the approach to media leadership training run by Rhodes University’s Sol Plaatje Institute for Media Leadership (SPI) differs: we integrate cutting-edge management theory into our practical training programmes and promote the need to embrace change management in all our learning and teaching.

The Essentials of People Management (EOPM), which took place at the SPI from 31st May to 4 June this year, focused specifically on the challenges of leading and managing diverse groups of people in a rapidly changing industry.

By the end of the week, participants agreed that great weight should be given to HR Orientation, and effective Change and Performance management in the workplace.

Thandisizwe Mgudlwa, a freelancer who contributes to Independent Newspapers Limited, explains why he now appreciates the importance of investing in staff orientation:

“When I came here, I thought I knew much about people management, but I knew nothing. I am taking back the shared experiences, education and skills learnt, in particular the importance and processes of HR orientation. In my ten years working in the media industry, I’ve never really been given that opportunity to understand the philosophy, culture and the history of the organisations I have worked for. Now I understand that it is my right, as an employee, to demand that the HR department and other relevant departments explain these until I understand.”

Jimmy Dhlamini, Station Manager at Thetha Fm, echoes these views:

“Orientation is key; employers need to ensure that the process of orientation is taken forward. There is much that media practitioners need to learn in terms of properly orientating people.”

Many young talented people today prefer to work for start-ups; promising undertakings rather than an established company because they like the entrepreneurial challenge and tremendous career opportunities. Two of our EOPM short course delegates, both relatively young, have left the SABC because they say they were fed up with top management who relentlessly “crushed” their creative spirit. They explain that top management often exclude subordinates in the decision-making process because they (management) want to maintain the status quo.

Nobathembu Kani, a former SABC radio producer, explains what the role of HR in change management should be:

“The greatest insight I have gained is that the vision and mission (of the organisation) should be clearly communicated with your staff, especially when change is taking place. We cannot only be told to do things, blind-folded. We need to understand and share the vision and mission; I speak from experience! Transparency should be in place. HR should take a more active role in the management of staff rather than simply playing a consultant role to the other departments. Motivation is very important as well; remuneration is not only monetary.”

Kani says doing this course has encouraged her to pursue her ideals in any organisation:

“Now, not only am I fully aware of how I fit into the organisation but I also see how I can be an element of change. I feel empowered.”

These EOPM delegates may occupy different positions in their respective organisations, they may be managing one or more people and have varying powers of authority, but they all agreed that the sharing of experiences and problem-solving techniques was one of the most rewarding aspects of the just-ended EOPM.

Bultcha Teguest Yilma, co-owner, Managing Director and Deputy Editor-in-Chief of the Ethiopian-based Capital weekly newspaper, provides further insight:

“I now realise, very importantly, that each department needs a customised Performance Management form; I cannot expect that every department fill out the standardised form because each department has a different role to play, with staff that have different job descriptions, goals and needs.”

Another key learning area for delegates is the importance of effective communication in order to achieve the goals of the organisation.

Yilma notes:

“I now know that effective and continuous communication is crucial; you may think you have agreed on a common goal, but people forget or get side-tracked; so time and time again you need to set up follow-up mechanisms – reiterate, revise and re-evaluate those goals to make sure everyone is on the same path.

“Also, I don’t have a management background, I have an economics background. So in taking part in this course, I now understand why I fight with my Finance Manager who is also my HR manager. Now I understand it may not be because of a competence problem, but rather an ability problem. Now I know I really need to hire an HR person.”

For Besizizwe (Bheki) Mdhluli, Communications Officer at Naledi Municipality, the most important lesson on the course was retaining and refitting experienced staff:

“I’ve come to realise that in the changing media landscape what is important is that you don’t just retrench staff members, but seek alternative positions for them in the workplace so that you can retain (seasoned) workers.”

Often delegates who come on our short courses feel inspired to transfer the lessons they have learnt from SPI to their organisation. Mdhluli plans on organising a formal presentation:

“When I am back at my organisation, I will speak to my manager, try to organise a sort of conference to teach what I have learnt on this course to the handful of people I manage, and to the rest of my organisation.”

Some delegates simply feel inspired to be better relationship builders.

Denise Mhlanga, Editorial Assistant/Journalist at LiveOutLoud Magazine, explains:

“You definitely need to know yourself as a manager; your strengths and weaknesses. Also, don’t assume you know the needs and wants of your employee; talk to them, ask questions.”

SPI believes in the importance of continuous management training to achieve strategic awareness and to link strategic thinking with implementation. It is a requirement for all large companies as employees cope with new ways of doing business.

10 easy ways to fail as an entrepreneur

By Sue Rutherford
Many people dream of starting their own businesses and becoming financially independent, but while the idea of organising and operating your own business venture may be thrilling, there’s a good chance that your fledgling company won’t survive unless you identify potential pitfalls and plan to circumnavigate them.

Here are 10 ways that you could fail as an entrepreneur:

1. Poor market research

Make sure there’s a need for your product or service. Ideally, your offering should be unique and fill a gap in the market, but if there’s already competition in your intended sector, research ways to position yourself uniquely to improve your chances of success.

2. Inadequate planning

Every new business needs a roadmap to follow, a solid business plan. Unless you’re looking for outside funding, this doesn’t have to be a long, formal document, but it must at least outline the operational and financial directions that your business will take. On the flip-side, be flexible. Don’t allow a business plan to stifle your business if circumstances change.

3. Lack of experience

Not everyone is cut out to be an entrepreneur. If you aren’t a proven self-starter with a good track record in planning, organising and making decisions that can benefit your business in the long term, seek out experienced mentors and hire people who can compensate for your lack of expertise in certain areas.

4. Insufficient capital

It’s very common for entrepreneurs to misjudge how much they need for start-up capital, and how long it will take before their new business becomes profitable. This is usually because of inadequate planning and research. If you’re going to look for outside funding, choose investors who are familiar with both your industry sector and the challenges facing new business owners.

5. Over projecting sales volumes

Unless sufficient research is undertaken, you may very well miscalculate the size of your market. This will result in you over-projecting your portion of it and make meeting your subsequent sales objectives an impossible task. Furthermore, your cost projections will be too low and your end margins won’t be what you anticipated.

6. Feeble financial systems

Make sure you implement solid financial systems that will scale with your business, right from the start. There are many first-rate software packages you can make use of to keep your finances running smoothly. If you’re unfamiliar with good accounting practices then consider enlisting the services of a bookkeeper to help you on a regular basis.

7. Mismanaging cash-flow

Lack of financial discipline is a common cause for start-ups to fail. Cash is the life-blood of any business and learning to manage cash-flow correctly is critical. Keep a close eye on your debtors’ list and spend your income wisely. It may be very tempting to splash out on expensive resources, but before doing so, take an inventory of what you already have and be realistic about whether or not your new purchases are essential to the success of your business.

8. Unexpected growth

Planning for the potential growth of your business is just as important as planning for a shortfall in expectations. Failure to do this could be extremely damaging as growth periods are often unstable and confusing. Whether you’re increasing your market share or diversifying, you need a strategy to cope with expansion whilst still fulfilling your existing customers’ requirements.

9. Hiring the wrong people

At some stage in the development cycle of your business you’re probably going to have to employ people. Choose wisely and never hire for the sake of convenience as hiring the wrong people can seriously undermine the success of your business. You need to select people who, at the very least, meet your skill and behavioural trait requirements. Hiring experienced staff that you can trust will provide you with valuable support.

10. Fear of failure

To be a successful entrepreneur, you must be willing to accept failure. Unfortunately, fear of failure keeps many people from taking the necessary risks required to start and grow a successful business venture. To work through your fear, take a realistic look at your business, correct any problems that you’ve identified and then take action and move on.
Failure may be painful, but it can also be your best teacher if you are willing to spend time analysing your mistakes and applying what you learn from them.

Starting and running your own business means that you are in control of the process. While there are no guarantees, if you plan carefully, work hard, remain flexible and avoid the pitfalls mentioned above, you have a very good chance of becoming a successful entrepreneur and fulfilling your dreams of financial independence.

Have fun out there.

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