Management by securities is a new way of managing that companies use. This consists of choosing a set of values that are shared and put into practice by all the people who work in a company.
Fundamentally, it is a new organizational culture where the boss assumes the most important role for it to work, being in charge of aligning the work that is carried out throughout the organization. In order for it to operate efficiently, all company employees are required to commit to putting the chosen values into practice. These values should be the main elements that inspire the day-to-day work of the company.
Without a doubt, the main representatives of the administration by values are Ken Blanchard and Michael O’Connor who consider that the size of the companies and their level of profits are no longer sufficient elements to determine their level of competitiveness. For them, a successful company is one that is differentiated by the quality of the service they provide to their customers. But, also, because they provide an excellent quality of life to their workers.
How does securities management work?
Above all, for this type of administration to work it is necessary that all the interest groups that collaborate with the company remain motivated. Motivation implies that everyone is willing to fulfill their business commitment to the company.
It should be noted that the interest groups are made up of all the people who collaborate inside and outside the company. The people who are part of the interest groups can be entrepreneurs, owners, employees, suppliers, distributors and anyone who collaborates with the company. Motivation is achieved through a set of business practices.
What are values?
Values are the purposes that define the reason for being of a company. Values represent a set of fundamental beliefs that help to choose one thing over another, or facilitate choosing between one type of behavior and another. This allows individual or collective goals to be set.
Therefore, the values of a company represent a set of professional and ethical principles that its collaborators undertake to respect and apply in all their activities.
What role does the leader play?
Management by values requires a leader who has the skills and abilities necessary to influence the behavior of others. The leader must ensure that all employees work motivated to achieve the proposed goals and objectives.
Consequently, managing by values needs a leader to be at the head of the entire process. This leader can be the manager, the boss or the director of the company. The leader must evaluate if he is adequately fulfilling the activities of realizing, connecting and integrating. These three activities are considered fundamental pillars for this type of administration. For that reason, these three activities are known as the three acts of life.
The three activities that constitute the key elements of administration by values are:
In the first place, performing is a fundamental activity or act that any human being performs. Only man is capable of establishing and setting goals that are not related only to the end of survival. Carrying out implies setting goals for the future. In simpler words, realizing is doing to become.
Second, connecting is an activity that consists of being able to relate to others. It means that it is necessary to invest our time, our capacities and part of our life with other people. These people can be family, friends, co-workers, or anyone who makes us feel good.
Third, integrating means being able to combine the activity of doing and connecting. When integrating, the values or purposes that are considered significant are defined. These values will be used in everyday life because they are important on an individual level. But they are also important to everyone with whom we interact. By integrating it changes to be able to be.
How important is the word boss in securities management?
Now, for a company to be successful using management by values, it must take into account the importance of the word boss, since everyone who collaborates with a company, whatever the position they hold, must think, feel and act as a leader.
How to understand each of the letters that make up the word boss
The meaning and importance of each of the letters is as follows:
1. Letter J
Indeed, the letter J represents the organization’s customers. Every company must be characterized by the quality service that it must offer to its customers. Customers should be the main element in defining and implementing any marketing strategy.
2. First E
Then the first E of this word is identified with the employees of the company. The company must be committed to creating a pleasant and satisfying work environment. This will make workers feel good about their work. This level of well-being achieved will allow employees to develop a high sense of belonging to the company. If they feel they are an important part of the company, they will work towards the achievement of the common goals and values of the organization.
3. The letter F
For its part, the letter F symbolizes the owners of the company. This allows us to understand that for a company to be successful it must generate profits. In turn, profits are possible when companies are well managed, since all resources are used efficiently and effectively.
4. Second E
The second E of the word boss is associated with the interest groups that collaborate with the company. Stakeholders can be customers, suppliers, distributors, and even competitors. Links of trust must be created between the company and its stakeholders or significant groups.
What is the process followed in securities management?
The phases of securities management are described below.
1. Process for clarifying values
Naturally, in this first phase the values, purposes and mission that identify the company must be clarified. This process can be summarized as follows.
- Approval from the owner is sought first.
- The manager, the management team and the stakeholders present their ideas separately.
- Then the manager, management team, and stakeholders share their ideas and compare them.
- Next, a synthesis is made with all the contributions to define the mission and the recommended values. This synthesis is presented to the board of directors for its corresponding approval.
2. Communication process
Then, in the second phase, all employees must be informed about the mission and the values that identify the company. This information is made available to employees by some form of communication that is appropriate. Lectures, reports, posters among some that can be mentioned could be used.
Finally, alignment is the most important phase of managing by values. Once the mission and values have been communicated to all employees, all efforts are focused on organizational behavior and practices. The aim is that the practice and the organizational conduct is consistent with the statements of the mission and the values of the company. Only if there is coherence can the goals and objectives be achieved.
To finish, we can say that management by securities is a different way of managing. It affirms that the success of companies is achieved only when entrepreneurs, owners, employees, customers, suppliers and distributors are committed to achieving common values and goals. The values of every company should focus on providing excellent service to its customers and an excellent quality of life for its employees.