Best management practices

Luke C. Ng

Frank G. Zarb School of Business, Hofstra University, Hempstead,

New York, USA

Abstract

Purpose – Management means “getting things done effectively through people”. This implies the
importance of leadership and people skills in management practice to achieve optimal results. Great
managers usually succeed for a number of reasons. They usually possess nine common management
practices. This paper aims to identify these common denominators in their character and management
practice that define them.
Design/methodology/approach – Case examples are used to illustrate the application of those
management practices. Successful managers from well-known industry giants such as IBM, Nestle’s,
P&G, Apple, Loews’, GE and PepsiCo are profiled to demonstrate how their success can be traced back
to those practices.
Findings – The paper demonstrates that every manager can easily apply the nine management
practices daily to achieve a successful outcome. While some of these traits appear to be personal
habits, it is these simple management habits that influence subordinates to perform their best.
Originality/value – Most good managers are trained, not born. The nine personal practices
identified in this paper can be easily adopted on a daily basis. With consistent practice, the nine
personal traits help train managers to become more effective leaders in driving optimal performance
and motivating subordinates to “get things done effectively”.

Keywords Management technique, Social skills, Motivation (psychology), Leadership,
Management development, Best practice

Paper type General review

Introduction
Management means getting things done effectively through people to achieve the
desired results. This requires a combination of leadership, communication and people
skills.

A manager without any leadership skills is like a ship sailing on high seas without a

compass and a gyroscope. The manager, in that case, is merely a bureaucrat pushing
paper and administering the daily chores and directives of higher-ups – a glorified
order-taker.

In his groundbreaking 1977 Harvard Business Review article, “Managers and

leaders, are they different?” professor Abraham Zaleznik illustrated the differences
between managers and leaders based on four attitudinal qualities: attitudes toward
goals; conceptions of work; relations with others; and sense of self (Zaleznik, 1977).
However, the twenty-first century managers must possess all those attributes. They
must proactively assume positive outlook, constantly shaping the competitive
landscape, and steering the firm to their desired course. Rather than accepting status
quo, they always examine alternatives and develop new approaches to problem
solving. Moreover, they emotionally connect with colleagues and subordinates by
establishing open communication links, thereby inviting new ideas and fresh
approaches to getting things done. They usually avoid getting bogged down by the

The current issue and full text archive of this journal is available at

www.emeraldinsight.com/0262-1711.htm

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Journal of Management Development

Vol. 30 No. 1, 2011

pp. 93-105

q Emerald Group Publishing Limited

0262-1711

DOI 10.1108/02621711111098398

bureaucratic process. Instead, they find ways to “bypass” or change the process to
steer clear of bottlenecks.

In the auto-biography, War as I Know It, General George Patton and author Rick

Atkinson described how the legendary second world war commander managed the
allies invasion of Sicily and the subsequent campaign to rescue encircled US
paratroopers in Bastogne. He demonstrated how a military leader managed the
campaign skillfully by “re-shaping” the “competitive landscape” (changing the
process) to achieve optimal results. However, all these successful actions were made
possible in large part because of Patton’s sense of self – a special confidence of
“destiny” in the organization (Atkinson and Patton, 1947). Likewise, modern day
managers must assume and exert the same self-assurance to achieve the targeted
outcome by leading the team with confidence.

Great managers usually exhibit nine common management practices. In this paper,

examples are drawn from companies such as IBM, Nestle’s, G.E., Loews’, P&G,
PepsiCo and Apple, to illustrate the actual application of these practices.

Visionary big picture orientation
A good manager must have the capacity to see the “big picture” – the ability to see the
forest rather than looking at individual trees. This unique attribute is usually the
hallmark of a great manager. It requires the manager to think strategically, like a good
chess player, planning several steps ahead. Equally important, it requires the manager
to assess the implication of each move, especially their long-term impact, not merely
short-term results.

Even though Lou Gerstner had no background in technology, he was recruited out of

Nabisco (a food conglomerate) to be the CEO of IBM. By his own admission, Gerstner
never even used a PC (personal computer) until the first day of his arrival at the Big Blue
(Gerstner, 2002). However, he was able to strategically see the “forest”. He saw that the
world was changing due to the “tech revolution” while IBM was still resting on its
laurels. The company was blindly stuck to the mainframe strategy – trying to perfect
the humongous “IBM big box” while the rest of the world was going PC and work
stations. This emerging trend would essentially make IBM’s flagship irrelevant.

Despite being an outsider, Gerstner was able to change the strategic focus of IBM by

liberating it from the traditional “marketing myopia” as described by Ted Levitt’s
revolutionary thesis (Levitt, 1960). Today, Big Blue is thriving again simply because
Gerstner was able to “convert” the stodgy old giant into a nimble technology firm.
About 60 percent of IBM’s current revenue comes from software/service/consulting.
Only 1/3 of its business remains hardware related. Without Gerstner’s visionary big
picture strategic shift, IBM might have disappeared into the oblivion, like Wang
Computer, E-Toy and Gateway Computer.

In a different way, A.G. Lafley, the current Chairman and CEO of Procter & Gamble

and Ram Charan described in “The Game Changer” how he turned around the
embattled consumer product giant after unexpectedly yanked into the CEO suite
(Lafley and Charan, 2008).

Unlike Gerstner, A.G. Lafley is a life-long P&G veteran with over 30-years of brand

management experience. As an insider, however, he saw the need to change the status
quo – a unique P&G mentality that was prevalent for many decades. Essentially,
Lafley. managed the monumental change perfectly by looking at the “forest” with a

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different strategic vision. He began fostering a new mindset for all P&Gers by first
changing the attitudes of the company.

Contrary to P&G of the past, Lafley encouraged that innovations must be promoted

from both inside the company (traditionally) and outside sources as well. This led to
the unprecedented sourcing of new ideas from the outside such as the battery-powered
toothbrush. From a marketing perspective, this was a brilliant move. It essentially
transformed the old standard toothbrush from a commodity that everyone needs
(retailing between 75c to $1 each) into a $6 mechanical brush that many consumers
want!

This moved the consumer up-market and raised the toothbrush revenue

significantly. Equally important, the ergonomically designed brush is powered by
batteries (that P&G happens to distribute – Duracell). It was followed by other
mammoth acquisitions such as Pantene and Wella Hair Care, only to be surpassed by
the epic $56 billion purchase of Gillette. Essentially, A.G. Lafley transformed P&G
from a “soap” company (Ivory & Tide) into a consumer product giant (personal care
and beauty care, family care, health care, and household care).

Meanwhile, Lafley initiated game-changing policies such as inviting ideas for

innovations from suppliers and even P&G alumni from around the world. The idea is
to tap into the vast network of former employees who were raided by other firms
regularly. Many of the P&G alumni have become very successful in other companies.
Some notable examples are Meg Whitman, who became Chairman of Ebay; Steve
Ballmer, the current CEO of Microsoft; Steve Case, who founded AOL and Jeff Immelt,
current CEO and Chairman of GE. They all had their humble beginning at P&G! With
these untraditional strategic shifts, Lafley has steered P&G on an enormous growth
path analogous to GE’s during Jack Welch’s era. In retrospect, none of these could have
materialized without Lafley’s visionary strategic change. Equally remarkable was that
A.G. managed the disruptive change process perfectly by rallying the troops to support
him enthusiastically – a seismic shift of entrenched attitudes that his predecessors
were unable to achieve.

Other examples of visionary managers are Steven Reinemund and Indra Nooyi of

PepsiCo as well as Steve Jobs of Apple.

Both Steve Reinemund (former Chairman and CEO) and Indra Nooyi, former CFO

who succeeded Reinemund as CEO in 2006, are credited for their successful
transformation of PepsiCo. They accelerated the strategic shift by expanding the Frito
Lay division (snack) and restaurants (KFC, Taco Bell and Pizza Hut, etc., later became
Yum Brands).

Company resources were devoted to non-carbonated beverage categories with the

$14 billion purchase of Quaker Oats followed by Tropicana Orange Juice, Naked Juice,
Izzi and Aquafina Water (Business Week, 2002). These strategic moves were significant
because the world was changing – consumers were shying away from carbonated
drinks (soda) into alternative beverage, perceived to be healthier. Such acquisitions
were well timed to take advantage of the consumer taste shift.

Meanwhile, Pepsi’s food business expands into emerging markets by leaps and

bounds. This coincides with the explosive economic growth and the rise of the middle
class in China and India. Consequently, KFC and Pizza Hut have become the fastest
growing restaurant chains in those countries while Pepsi, the soda, is simply riding the
coattail of the food business, expanding one restaurant at a time.

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With the “big picture” visions of Reinemund and Nooyi, PepsiCo evolved from a

single me-too soda company into a food and beverage conglomerate powerhouse with
record earnings growth perennially (Pepsi, 2007).

Likewise, Steve Jobs transformed the former Apple Computer into the new Apple –

a consumer products company. It is no longer selling just the personal computer, which
has become a commodity with retail price and profit margin dropping by the day.
Today’s Apple has moved into a completely new frontier, creating nifty, user-friendly
products that consumers desire, such as iPod, Shuffle, iPhone. Jobs has essentially
created a new “blue ocean” for Apple as described by Kim and Mauborgne (2005)
making its traditional competitors irrelevant. Without any real competition on the
horizon, Apple could adopt a price-skimming strategy, charging premium price for
products (i-Phone introductory price of $600 each) that consumers were willing to
stand in line overnight for. Consequently, Apple’s stock price has performed much
better than Dell and HP in recent years (Apple, 2008).

A sense of curiosity and inquisitiveness
Curiosity is a very important attribute for a good manager. It prompts the manager to
keep acquiring new knowledge and to seek a better way to get things done.

The famous Robert Kennedy quote goes: “There are those who look at things the

way they are, and ask why . . . I dream of things that never were, and ask why not” is
particularly pertinent in the world of business. This propensity to probe “why not?”
enables the manager to keep finding a better way to conduct business. It challenges the
status quo mentality and practice. It also encourages us to explore alternatives and
promotes diversity in critical thinking for problem solving and general management.

The following personal experience is a good illustration of this attribute for every

manager’s daily practice.

Since arriving in New York from Hong Kong 41 years ago, the new environment

provided me with abundant opportunities to learn. My eyes were feasting with sensory
overload. I kept asking “Why?”, Why not?” and “How?” The new surroundings became
natural stimuli for my learning, which I could later apply in real life situations. Here is
a perfect example of how I utilized my inquisitiveness and applied it to business
effectively:

As I arrived at JFK airport three days after Christmas in 1967, I witnessed the

aftermath of one of the most severe snowstorms in decades. I saw snow for the first
time in my life. I still vividly remember the snow piles, twelve feet or higher all over the
airport. Meanwhile, numerous stranded travelers had been stuck at the airport terminal
for days. That was my first, up-close glimpse of New York. That image never escaped
me. I kept wondering why travelers were stranded at the airport and why many of
them needed to sleep on the floor of the terminal. My curiosity and observation
prompted me to think that there ought to be a better way!

It so happened that I was later employed by Pan American World Airways

(PanAm). Therefore I had the opportunity to put my newly acquired observation to
good use.

After learning the ropes of the airline business, I took the initiative and

subsequently recommended to PanAm management a way to improve procedures for
managing weather-related crises, i.e. by “pre-handling” potentially stranded
passengers. The idea was to make alternate travel and lodging arrangement for all

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booked passengers before their arrival at the airport on the day of the snowstorm.
Hence, they would not be stuck at the airport like other last-minute “walk-ins”. In this
way, we essentially prevented the traffic jams by “decongesting” potential bottlenecks
ahead of time.

Equally important, this would save the anxious passengers the hassle of “hurry up

and wait” at the airport just to find themselves stranded, frustrated and helpless. In
addition, this “prevention” procedure saves customers’ valuable time so they could do
something else more productively rather than getting annoyingly stuck at the airport.
Such a procedure would present the airline in a professional manner thereby creating
enormous goodwill, unlike the chaotic scene of the JetBlue fiasco just a few years ago.

My recommendation was eventually adopted. As a result, PanAm passengers never

had to endure such a chaotic situation like the scene I observed upon my arrival at JFK.
In this instance, my sense of curiosity and observation rewarded me with management
recognition and a subsequent promotion.

Importance of being observant
It was those attributes of curiosity, inquisitiveness and being observant that earned me
a job with PanAm to begin with. I was hired serendipitously, totally by chance!

When I came to the US after high school in Hong Kong, I planned to attend college to

further my education. However, while I was sending my friend off at the airport, I
observed that there was a long line of people in front of the PanAm counter. But none of
them had any luggage with them. That anomaly prompted my curiosity. Upon
probing, I found out that PanAm was accepting applications that day for employment.
I naturally followed the crowd and applied without much of an expectation. However, I
was pleasantly surprised to be selected for a series of interviews. Subsequently, I was
one of the seven lucky applicants hired from a pool of over 800 prospects.

As I encourage my students, this is another clear example of how curiosity,

inquisitiveness and being observant paid enormous dividends.

This was significant also because when I was in Hong Kong, I tried to get a job in

the airline industry straight out of high school. In those days, it was every young
graduate’s dream to work for a glamorous airline, so we could embark on exciting
adventures around the world. However, like all of my former classmates, we were
rejected due to severe competition and limited vacancy in Hong Kong at the time.

Ironically when the opportunity arose, albeit ten thousand miles and half the world

away, resulting from my curiosity and being observant, I jumped at the chance to work
for the legendary PanAm, and thus postponed my original college plans for a while.
Consequently, I could enjoy the many fringe benefits of working for a prestigious
international airline – the official flag-carrier of the USA. I was able to travel around
the world in my spare time, enjoying my new adventures. In fact, my entire family
benefited from my PanAm employment. My parents, brothers and sisters could enjoy
air travel – a very expensive luxury for most people back in those days before airline
industry deregulation.

My PanAm work experience is significant also on other counts. First, I worked with

a truly international staff. My colleagues came from various countries around the
world. This was very important, especially after I was promoted to supervisor; I had to
manage the staff from different cultures. The significance was compounded by the fact
that I was the youngest supervisor and the only one without a college degree then!

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In retrospect, if I were clueless and simply walking around the PanAm terminal like

a typical tourist – without observing and probing the anomaly of the scenery, I would
have missed one of the greatest experiences of my life!

Attention to detail
Besides “big picture” orientation, good managers must always pay attention to detail.
Fortunately, this is made easier by the two preceding attributes. A good manager
always ensures that he/she is well informed with all the details of the business.

Despite the colossal size of Berkshire Hathaway with record 2008 revenue topping

over $66 Billion (Berkshire Hathaway, 2008), Warren Buffett learns every facet of his
companies thoroughly. Buffett has such a good grasp of detail that he can quote facts
and figures off the cuff when questioned – a very important attribute of every
professional manager.

When I was running my own restaurant business until retirement in year 2000, I

trained my managers, hostesses and wait staff to pay attention to all detail of the
business. They all learned to remember customers, especially the regulars. After all,
they were the ones whose regular visits helped pay our rent and our salary! Moreover,
they learned all the customers’ likes and dislikes. Most important, they paid particular
attention to all the customers’ needs – for instance, allergies and idiosyncrasies.
Furthermore, my staff learned to remember what customers ordered during their last
visit (before computer technology was introduced into the restaurant scene) so they
could recommend something new for the customers, to keep their dining interests fresh
each time – to avoid boredom). This prevented customers’ interest fatigue, a resigned
feeling that “it’s the same old thing again!”

As raved by the New York Times food critics and others, customers were very

impressed by this unusual attention to details – my unique selling proposition (“USP”,
as described by the legendary advertising guru David Ogilvy (1964). They would keep
coming back week after week, especially with family and friends each time to impress
them, thereby expanding my customer base constantly. This was particularly
significant because I had a large core of regulars who would patronize our restaurants
two or three times a week. Many of them were physicians, lawyers, investment bankers
and heads of Fortune 500 companies besides celebrities, movie stars and politicians.
This word-of-mouth (WOM) effect essentially saved me the cost of advertising while
building “usage frequency” that P&G and Nestle’s were known for.

This was one of my “secret sauces” – my “invisible” secret weapon to entice regular

customers returning week after week. As a result, all my regular customers never laid
eyes on my “printed” menu. They preferred to rely on the advice of my staff to order.
This “secret sauce” – paying attention to details, was one of the critical success factors
because it created a different consumer dining experience. It eliminated the typical
(commercial looking) dining rituals – intently studying the printed menu, placing
orders, then anxiously waiting for the food. Instead, the process I designed provided a
personal touch. Diners would feel they were special – that they did not need a menu for
ordering. Meanwhile, the customers’ encounter with my staff (via consulting about
their meal plans) created a special relationship between them. Hence this rapport led
them to treat our restaurant dining rooms as their own – home away from home!

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Manage with visibility and enthusiasm
A good manager must always be visible to all employees and customers. The old
adage, “monkey see, monkey do” is an important axiom to remember for everyday
practice.

Both customers and employees must see with their own eyes that the “boss cares.”

Once Lou Gerstner became the CEO of IBM, he spent nearly 75 percent of his time
visiting different field offices and customers around the world. This enabled him to
witness with his own eyes actual conditions in the market place (Gerstner, 2002), rather
than simply relying on memos and conference calls. While he virtually lived out of his
suitcases hopping between conference rooms, hotel rooms, and the company jet, he
learned first hand from customers about their needs and complaints. Such direct
contact with clients and employees around the world was very impressive. They all felt
that finally someone from the New York headquarters cares. Importantly, they also
saw the enthusiasm of the new CEO! This prevented clients from switching to
competitors and employees jumping ship to rivals. Consequently, morale and
productivity shot up dramatically.

Likewise, during his reign as GE’s Chairman and CEO (1981-2001), Jack Welch

made sure that he was visible to clients and employees alike (Welch and Byrne, 2001).
He was always seen on the frontline, visiting factories and research labs, so that he
would be kept abreast of the latest. In this way, he was open to direct communication
with the shop steward on factory floor besides PhD scientists cocooned in R&D
facilities. Despite the fact that he had a PhD in chemical engineering, he forbid anyone
calling him Dr Welch. Everyone knew him as Jack, from janitors to the receptionists.
They could all stop him in the hallway and engage him in discussion, from the latest
GE invention to sports events. Essentially, Jack made himself a role model for visibility
and attention to details. Consequently, every employee was on top of his/her
responsibilities constantly.

In the best selling author and historian Stephen Ambrose’s book, D Day (Ambrose,

1994) and Cornelius Ryan’s The Longest Day (Ryan, 1959), both authors described how
General Patton and Brig. General Teddy Roosevelt Jr, respectively charged into battle
with their troops. In Patton’s case, he wanted to be on the frontline to manage the
execution of the battle plan. He would personally conduct on-site inspection of the
battleground ahead of time just like the legendary warrior Alexander the Great.

Likewise, General Teddy Roosevelt Jr insisted that he charged into a Normandy

beach with all the troops under his command, despite the objection of his immediate
boss. Roosevelt’s objective was to instill confidence and raise morale of the troops, who
would witness their commander, the son of the president walking with a cane, leading
them into battle, taking the same risk like everyone else, just like the legendary
Genghis Khan and Alexander the Great!

In business, a manager’s passion (or the lack thereof) is extremely contagious. There

is a lot of truth to the maxim, “monkey see, monkey do.” Employees could easily justify
their lackadaisical attitude by rationalizing that “why should I care if the boss
doesn’t?” On the other hand, the enthusiasm of Gerstner, Lafley, Welch, Roosevelt Jr,
and Patton sent out important signals to their subordinates to motivate them into
actions to ascertain positive results.

In a stark contrast, Jimmy Cayne, Bear Stearns’ former chairman was playing golf

in a Florida country club while the embattled investment bank imploded on Wall

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Street. As detailed by William Cohan’s latest book, House of Cards (Cohan, 2009), his
ominous detachment (or ignorance) from the realities of his firm’s deep-seeded
problems was manifested when a reporter asked him about the company. He insisted
that Bear Stearns was healthy and poised for growth. Cayne came across as totally
clueless and out of touch.

Crisis management skill
A good manager must be equipped with crisis management skills. They separate the
pros from the amateurs. How one manages during a crisis defines the manager.

Former New York City mayor Rudy Giuliani became famous after the 9/11 tragedy

mostly because of his handling of the crisis. As described in Jack Newfield’s The Full
Rudy (Newfield, 2007) he was on the scene immediately covered with soot, overseeing
the rescue efforts despite the potential danger of being personally exposed to the toxic
dust clouds. Again, he displayed leadership when others were dumbstruck. He was
very visible on the frontline, just like Patton and Roosevelt Jr. This was coupled with
an immediate call on airwaves for calm. Such a display of courage and confidence was
contagiously comforting and reassuring. Equally important was his immediate
implementation of NYC’s emergency plan, which had been crafted years ago with
Federal Emergency Management Agency (FEMA), established during the Nixon
Administration. It is significant to note that such instant execution of the plan was
possible only because New York City has regular emergency drills with FEMA
throughout the year.

Hence, practice, practice and more practice is the key to success in a plan’s

execution. The success rate is a direct function of how well the team practices. As a
result, Giuliani was named Time magazine’s “Person of the Year” in 2001.

By comparison, New Orleans’s mayor, Ray Nagin’s management of another historic

disaster, hurricane Katrina in 2005 shows drastic differences. According to a recent
New York Times report, residents are very unhappy about the lack of progress to
rebuild the entire area. A recent University of New Orleans poll also recorded a dismal
24 percent approval rating Nagin (Schwartz, 2009).

It was the lack of preparedness that turned the Katrina storm into a disaster. After

all, hurricanes in that part of the country are perennial events. One would assume that
the city would have a plethora of experience in handling potential hurricanes to
prevent them from turning into disasters. This is particularly significant given that the
storm had been tracked all along. The storm’s arrival was not unexpected. Moreover,
the geographical terrain of New Orleans is a known factor. Together with low levees
and a long history of hurricane events, all these were prescriptions for a horrific
catastrophe waiting to happen. One wonders why New Orleans was so unprepared to
deal with the expected hurricane.

To make the matters worse, indecisiveness and inaction were major causes of the

extent of the damage. Evacuation was never ordered until the day before Katrina hit
the city. Furthermore, instead of onsite management of the storm preparation, Nagin
was in New York City, just two days before Katrina hit New Orleans. The nonchalant
and detached demeanor and his absence from the frontline sent out wrong signals to
the citizens of New Orleans. This was a major reason for the lackadaisical residents’
reluctance to evacuate until too late. While the public media blamed FEMA’s

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incompetence, it is important to note that the same FEMA agency was highly praised
for their response and performance of 9/11.

In dramatic contrast, despite the traumatic tragedy and devastation of the 9/11

attacks, New York City bounced back remarkably in record time. The economy
rebounded stronger and equally vibrant. Mayor Giuliani deserved a lot of credit for
NYC’s preparedness. His management of the crisis truly defines his legacy positively in
history.

The moral is that a good manager must be constantly prepared through regular

training. This includes developing contingency plans with scenario analyses and
frequent reviews, updating and adjusting if necessary. Back in my days at Nestle’s,
before the invention and adoption of personal computer, I used to have several sets of
P&L statements in my briefcase prepared with different assumptions and
contingencies developed under various conditions and scenarios. After all, with
multi-million pounds of chocolate produced annually, it involved the livelihood of
many thousands of employees and their families.

Manage with openness and set an example
A good manager must be approachable and open to new ideas. When Mike Bloomberg
became the Mayor of New York City, he completely transformed City Hall literally and
metaphorically. Armed with his business background and management experience
from founding and operating the Bloomberg News organization, he overhauled City
Hall with a complete makeover. First, he tore down the traditional design of executive
offices by converting them all into cubicles with see-through partition, just like a
typical newsroom. Equally significant is that the Mayor’s office is in the midst of all
those cubicles. The message is clear – Bloomberg is transparent and approachable.
Like Gen. Patton and Gen. Roosevelt Jr, he wants to be on the frontline with his troops.
The newsroom-like office allows him, the manager, to keep on top of what’s going on
with a single glance around the room. This is literally hands-on management with
visibility and openness.

Unlike his predecessors, Bloomberg commutes daily on the subway between his

residence on Upper Eastside and City Hall in Downtown. Besides promoting mass
transit and improving the environment, Bloomberg gains first-hand knowledge of the
daily challenge of a commuter. Therefore, he comes across as the people’s mayor, very
approachable, open to new ideas and complaints by speaking with people on the street.

Nearly three decades ago, when Andrew Tisch first became the new CEO of Bulova

Watch Co., a Loews’ Corp. subsidiary, he overhauled the company with similar
“makeover”. The first day he went to work at the Queens, NY headquarters at 7 a.m., he
ordered the maintenance department to paint over all the “reserved” spaces in the
parking lot – no more designated “reserved” slots. His new policy was “first come, first
served.” Those who came in late would have to park at the far end of the parking lot, a
football field’s length away from the office building.

Next, he had breakfast in the company cafeteria rather than the executive dining

room. Before he finished his last coffee, he signed an order to tear down the executive
dining room. All managers and executives were instructed to join the rank and file for
all meals in the cafeteria by sitting in their midst. Thus, Tisch learned more about their
needs and challenges of his employees. As a result, he personally received numerous
suggestions and new ideas about improving the business, which made “suggestion

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boxes” obsolete. Meanwhile, morale was raised to new heights while productivity shot
up dramatically because workers and managers began showing up at the parking lot at
7 a.m. instead of 9 a.m. Moreover, employees found out that they could meet the CEO
face to face by having breakfast with him at 7 a.m. The result was spectacular. Tisch
was able to turnaround Bulova in only 18 months!

Like his former Harvard Business School classmate, P&G’s Lafley, Tisch’s “secret

sauce” was to reach out to the ordinary rank and file to win their hearts (raising morale)
and minds (gaining breakthrough ideas!). Empirical evidence shows that a
people-oriented manager will always obtain the best work from subordinates!

The art of delegation and communication skills
History now recognizes that President Ronald Reagan was one of the best managers of
US politics. He managed the White House administration like a corporation. He ran the
country like a Chairman of the Board and CEO, reviewing strategies and setting policy
direction. The Chief of Staff, James Baker III was essentially the chief operating officer
(COO) to ascertain that policies were carried out effectively.

At the time, detractors criticized that Reagan was not hands-on. However, history

seems to prove otherwise. In Edmund Morris’s Dutch (Morris, 1999) and Reagan’s Life
in Letters (Skinner et al., 2003) the “cowboy president” was much better informed and
always on top of every issue than his critics gave him credit for. One managerial trait
was clear – Reagan always delegated the actual implementation to his staff once
decisions were made. This also removed him from any culpability of political
controversy such as the “Iran-Contra” episode.

Another hallmark of a good manager is communication skill, epitomized by

Reagan’s. His message and delivery were superb, right on message and always sharp
and clear. He always found ways to communicate with people effectively, such as hand
writing personal notes to ordinary citizens. Likewise, GE’s Jack Welch was also known
for handwriting personal notes of feedback and congratulations to subordinates.

Once Warren Buffet makes a decision regarding an investment, he delegates the

execution to his staff and leaves the managers alone with the day-to-day operation. He
merely meets with them once a year for business reviews, unless the managers request
an audience to resolve urgent issues. This management practice is extremely
compelling because it empowers the employees. With such enormous responsibility on
their shoulders, the subordinates would usually do their utmost to ensure the
objectives are achieved and not to disappoint the boss. Hence, management wins their
hearts and minds besides their loyalty!

After I was recruited out of P&G by Nestle’s, I managed their chocolate business in

the Westchester, NY headquarters. Despite the suburban setting, we used to conduct
semi-annual full-day “Blue Sky” meetings off the premises. All marketing personnel
and staff from other departments and the advertising agency were expected to attend.
The objective was to provide an informal forum for every employee to express their
ideas unencumbered by the confines, procedures and protocols of the headquarters.
This arrangement also allowed them equal opportunity to air out their thoughts and
new concepts without the interruption of telephones and unexpected guests dropping
in. This was essentially an open forum with no formalities. Only the “blue sky” was the
limit. Employees would be publicly recognized and rewarded for any ideas adopted in
the informal get-together. Consequently, this open-channel communication

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arrangement led to a constant flow of new product ideas besides raising employee
camaraderie.

Fast-forward to the twenty-first century. Best Buy designed a grass root program to

generate new product and services ideas. As reported in BusinessWeek (Reena, 2009),
the program recruits selected employees to live together for ten weeks in an apartment
complex outside Los Angeles entirely paid for by the company. There they brainstorm
and come up with creative ideas to market new products or services. This innovative,
open-ended “boot-camp” approach for breakthrough concepts is one of the major
reasons for Best Buy’s success, causing the eventual demise of Circuit City. Equally
important, not only that such a program is very cost effective, it also empowers
employees and motivates them to think creatively for their business. Thus, ebullient
employees passionately take ownership in the future of the company.

Talent cultivation and mentoring
A manager is only as good as the people who work for him/her. This means he/she
must develop an on-going program to cultivate talent for the organization. Jack Welch
is considered to be one of the best managers in recent history. One reason was his
accomplishment for creating a deep talent pool (3) Welch developed such a deep
executive bench that by the time he retired, he could select from a large group of
executives. Welch eventually passed the baton to Jeff Immelt. However, headhunters
immediately recruited the two lieutenants, namely, Bob Nardelli and Jim McNerney Jr.
They both became CEO of other Fortune 100 companies, namely, Home Depot and
Boeing respectively.

Grooming and training subordinates are major responsibilities of a good manager.

In reality, it is in his/her best interest to mentor subordinates well. After all, once the
boss moves up the organization, the vacancy needs to be filled. From a selfish
standpoint, the boss would ascertain that his/her agenda is carried out effectively by
the successor, preferably the person he/she trained. If the transition does not execute
well, things could fall apart, which would be a bad reflection on the boss. Worse still, if
an outsider is brought in to fill the vacancy, he/she might have a different agenda. This
would lead to dismantling everything the predecessor built, thus destroying the legacy.

When I was in the restaurant business, I made it a priority to train all my staff the

way I envisioned the restaurants to be run. This was especially important since I had
different ideas about operating style and process, compared to the conventional and
traditional restaurants. Meanwhile, my dining room managers and chefs actively
mentored their subordinates to ensure consistency of food and service.

The new IBM, however, takes a very creative approach according to BusinessWeek

(Hamm, 2009). They changed the standard mentoring protocol whereby a seasoned
executive would counsel and impart valuable advice to a junior employee. Beginning in
2009, the company established a new global online system for mentoring. Volunteers
were recruited to coach/consult junior employees across the globe. Remarkably in only
two months, over 3,000 mentors volunteered to impart advice online after being
screened and matched for their areas of expertise by human resources department. The
result is improved morale and camaraderie. Serendipitously, the added benefit is
reduced cost of mentoring logistics.

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Conclusion
A manager is like a conductor initiating every move so that every member of the
orchestra produces the desired sound for a cohesive outcome – symphonic music. How
well the music sounds depends on the energy, leadership and management skills of the
maestro. Since management is “getting things done effectively through others,”
people-management skill is vital to achieving success.

This paper details nine best management practices that have been proven

successful. They would enhance the entrepreneurial and leadership skills of a manager
besides motivating employees to achieve the desired results effectively. Copious
corporate examples are used throughout the article to illustrate the actual application
of such management practices.

The key, however, is execution with consistency. After all, employees are only as

good as the manager leading them.

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About the author
Luke C. Ng has over 37 years of industry experience in the areas of management, operations,
entrepreneurship, consulting, development and non-profits. He has worked in management roles
for companies such as Procter & Gamble, Nestle’s, and Pan American World Airways and was
the founder and CEO of a group of upscale restaurants and an import/export company. He was a
featured speaker at the Food Marketing Institute of America (FMI) convention 1997, Chicago.
Luke has served as a consultant to the president of Lifetime Brands Corporation as well as to
Chinese companies in the areas of marketing strategies and foreign expansion. He advised the
Managing Director and Chairman of a Hong Kong conglomerate (a Hang Sang Index company)
on corporate strategy and new venture initiatives and advised US corporations venturing into
Hong Kong and mainland China. Luke also advised Foreign Relations Committee Chairmen of
both the House and US Senate on the reversion of Hong Kong to China. Luke has been an active
fundraiser for various charities organizing food and clothing drives for refugee children and
operating a primary school staffed by volunteers for over 800 refugee children. Prior to becoming
a professor at Hofstra University’s Frank G. Zarb School of Business, Luke served as a guest
lecturer for eight years (Hofstra, Iona, and Pace Universities). He now teaches management,
marketing, international business, services marketing and business ethics in the MBA program;
international business in the executive MBA program; and competitive strategy in an Executive
Education program. Luke also served as Director of Recruitment for four years at Hofstra
University’s Frank Zarb Business School while teaching. Luke received an MBA from Harvard
Business School (1977) and his BBA from Hofstra University (1975). Luke C. Ng can be contacted
at: [e-mail]

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