; 4. Developing a Company Philosophy: Establishing the values
and principles that define the
company culture, such as, “how
things are done around here.”
; 5. Establishing Action Plans &
Rules: Creating the key operating
processes and the instructions
that guide employees what to do.
; 6. Building the Organization:
Creating a structure
and accountability that enables
of the strategic
; 7. Providing People: Hiring
and developing a team fully
capable of satisfying customers at
; 8. Instituting Effective Processes: Implementing and improving
the processes that are critical to
short- and long-range objectives.
; 9. Providing Plant & Equipment: Creating the physical facilities required to service customers
effectively and generate profits.
; 10. Securing Capital: Ensuring the availability of sufficient
cash and credit to operate the
; 11. Setting Standards: Defining
the operational performance levels required to achieve strategic
; 12. Establishing Operational
Plans: Defining standard oper-
ating procedures that enable
people to achieve critical goals.
; 13. Providing Control Infor-
mation: Providing performance
measurement tools that enable
close monitoring and fine tuning
of key processes.
In recognition that people are
the core ingredient in every business, Bower added a final process
focused on inducing a company’s
employees to perform the work
required to satisfy its customers
at a profit:
; 14. Activating People: Commanding and motivating workers
to follow the company’s plans,
policies, and procedures.
As a manager, you must avail
your company of all legitimate
methods to stimulate your people
to perform productively, to get
them to cut loose and excel.
Bower lists eight methods for
; 1. Orders – Commanding another person to take action.
; 2. Penalties – Threatening or
imposing punishment for poor
; 3. Advice – Suggesting, rather
than ordering, a specific course
; 4. Constructive Job Attitudes
– Providing freedom to act, op-
portunity to advance, and a sense
; 5. Rewards – Compensating
for achieving target results with
money and/or advancement.
; 6. Personal Commitment –
Stimulating interest in the job
; 7. Self-Government – Creating
teams in which effort is connected directly to success.
; 8. Leadership – Inspiring effort and sacrifice.
The first seven
methods form a
ing from a strict
Smart managers weave these acti-
vating means into compensation
packages that drive the required
productivity of each process.
In general, a productive work-
er wants to have the responsibil-
ity and the authority to complete
the task at hand, to know how he
is performing against a standard,
to learn how he can improve, to
understand his promotion op-
portunities, and to be paid fairly.
Bower believed that self-
government activates peak
productivity. But he realized that
the ideal method could not be
employed in every process and
thus must be combined with ac-
tivation techniques 1 through 6.
For example no people manage-
ment system is workable without
penalties and advice for correct-
People act more productively
when guided by established
processes and principles.