Control errors: sporting experience application
Problems of companies associated to administrative solutions originated from a whole range of reasons.
The first originates in the company. So, there are some stages of business development, and in the management theory there is a hypothesis that the same director can become "the most effective" only on one-two of these stages, on the other he will work less effectively and make incorrect strategic decisions.
For example, the director of a startup staking earlier on the maximum efficiency and weight of each step and expecting more the saving of available investment funds (since a couple of incorrect decisions can lead the developing company to an abyss), upon a successful transition to a hyper fast development stage will take administrative measures for compliance to growth of the company too slowly.
On the contrary, when the company reached the maturity or it is close to it, keeping of the existing positions on the market by means of profitability, efficiency of operations increase , customers loyalty and competent competitive investigation are also necessary. The key manager aimed at continuous achievement of new peaks, the similar situation can seem less attractive. And he will make decisions on increasing funds insertion for achievement of the quantitative parameters (number of employees, the market share, the city/country distribution and so forth) exceeding the current parameters though it is quite probable that the similar growth can cost the companies much more, than the actual productivity of this increase.
So, in the Russian restaurant business in 2009-2012 there was a fight of key players for the market share in this connection non-profitable institutions opened. By 2013-2014 profitability of catering establishments in general decreased almost twice because of incorrect administrative solutions of the largest companies.
Other erratic administrative solutions come from the outside, for example, along with the existing trends: any radical management innovation draws attention of journalists, scientists and the public. So, as HR regards, in particular in the IT sphere, by the end of 2000s it became extremely fashionable to engage the employ distant workers and to create conditions for possibility of their operation in any place (seeing that, portable PCs, cloud technologies and other "usefulness" were created including for these purposes). It is quite probable that this employment method is the future, but similar changes require full reorganization of management systems: compensations, motivations of employees, intra corporate culture and other. The takeover of this operation type without serious qualitatively new administrative complex development in the short term can lead to expenses decrease (distant workers are often paid less), but then it will decrease the current level of their activities efficiency.
A safeguard from similar incorrect decisions both from the first, and from the second sets serves, including, involvement of experts in the sphere of control from outside. A really professional team specialized in administrative and strategic consultation will be able to evaluate the market both from the outside, and from within due to expert estimates, to find the existing problems and stop factors in the company, and also to implement the latest decisions in a complex which will bring profit to business. Eventually even if sportsmen, including Olympic champions and the best soccer teams, enhance the skills and develop new tactics and strategy with the trainer, then why managers should work alone?