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3 principles of an effective management

Few months ago I wrote an article on Medium, describing how to improve your startup management by implementing very basic management rules formulated by Peter Drucker back in 1967. Below you can find the excerpt from this piece.

Old-good management principles

Drucker formulated three principles of effective management:

1. As a manager your goal is to maximise outcome from available resources.

2. Your jobs is to manage effectiveness (doing right things) and efficiency (doing things right).

3. Pareto rule is in force – by focusing on 20% of right things you can achieve 80% of results.

Improve your startup management

4 tips to take off your startup management:

1. Define your goal and stick to it.

2. Focus only on actions with the highest impact on the goal.

3. Kill or limit all the actions not aligned with your goal to unblock your resources.

4. Leverage already known tactics and identify new ones with fast testing.

There is nothing so useless as doing efficiently that which should not be done at all.
Peter Drucker

Your activity porftolio before implementing these 4 tips may look like that:

Startup activities before optimisation

And after:

Startup activities after optimisation

You get right of all activities with the lowest potential, improve execution of the most effective ones and keep searching for new – even more effective.