Leadership, Office Management

Why Business Success Is Led By Proactive Management

Have you ever heard a manager say they spend their time putting out fires? What does that mean exactly? We know they are not actually putting out a fire, but to them it has the same fight-or-flight response in their body.

When a person is being reactive to a problem or situation, it sets off a feeling of anxiety that demands immediate attention to resolve it.

Being reactive is very stressful on management and employees, as the swift reaction to alleviate the feeling of stress can often compound the original problem.

Leaving the event in control and responding to problems only after they arise not only doesn’t allow for planning, but forces the person to react to each situation as it unfolds. The drawback here is there are different reactions to each situation, regardless if the situation has happened before. Think about how much less stress and how much smoother the situation would be if there was a plan of action in place to handle that particular situation.

To change the thought process from reactive thinking to proactive thinking, a person has to think ahead as to what may happen based on a situation or event that has happened in the past. For example, poor customer service on the phone due to long hold times or not knowing the information, can lead to customer dissatisfaction and loss of customers. Another example could be taking payment for a product that is out of stock. As the days or weeks pass, the customer becomes upset their purchase has not arrived. Without policies in place on how to keep phone calls moving, having employees sufficiently trained on products and services, keeping an accurate inventory, and how to listen if a customer is complaining, things are bound to bog down and go badly.

Changing from reactive to proactive thinking may seem more stressful in the beginning as there will be an overlap between the reactive responses and proactive planning. Be diligent though! Proactive management ensures less stress, better planning, and better handling of problems when they arise in the future.

Below are 6 processes to ensure proactive thinking and actions.

  1. Thoroughly train new employees on the phone and front desk to successfully help customers.
  2. Keep a current price list next to the telephone or on the computer to ensure quick and accurate pricing.
  3. Take inventory on a regular basis to ensure products are in stock.Try to avoid selling and taking payment on products that are out of stock as restocking could take weeks.
  4. If you sell the second to last item off the shelf, take the time to place an order to restock or tell someone it is time to reorder.
  5. File or put customer and product invoices into an accounting program or file cabinet on a regular basis for quick access.
  6. Give customer surveys and review on-line comments to continually appraise yourself, your employees, and your business’ performance.

Are you a proactive planner or reactive fireman? What have you found to be your best proactive planning strategies? What are your most reactive situations?

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