AST 205 Chapter 2 NotesManagement and Business Plans“The path of least resistance leads to failure”

What we’re going to cover

• -The 4 Management Functions• -Most Common Managerial Errors• -Components of the Business Plan• -Delegation of Responsibility• -Have a Decision Making Plan• -Managing Your Time

What is Management?

• Short Definition- Getting things done through others. A good manager is a good leader.

• The four functions of management are:• Planning- Determining goals and

establishing policy. Objective planning is setting long and short range goals. Operational planning is setting policy, procedures, and standards

• Organizing- Structuring of jobs and coordinating effort.

Four functions of management ctn.

• Directing- Delegating and Motivating• Controlling- Evaluating and Taking

corrective action

Some Managerial Errors

• 1. Failure to Anticipate Industry Trends• 2. Failure to Establish Priorities• 3. Being Indecisive• 4. Poor Management of Time• 5. Poor Communication Skills• 6. Lack of Personal Accountability• 7. Being Inflexible• 8. Being Inconsistent in dealing with

People

Sources of Time management problems

• Procrastination- b/c you dislike a task or it is overwhelming

• Phone/email/other interruptions- then failure to get back on task

• Too many non-specific meetings• Unplanned visitors• Lack of delegation• Too much focus on putting out fires rather

than preventing them• Lack of priorities- related to all of the

above

How to fix time management problems:

• Plan each day’s activities• Use a “tickler file” to remind you of key

activities• Prioritize tasks into urgent, important, and

“can wait”• Keep a notebook or recording device of

things to remember• Shut your door or get alone to focus on key

tasks• Learn how to deal tactfully with those who

are “time hogs”

Delegation

• What is it?• -Frees up managers time• -Encourages a sense of

responsibility• -Fosters employee development

Manager’s responsibility in delegation

• -Maintain Control• take corrective action• evaluate• ensure completion

• -Establish method for tracking progress• set time limits• request periodic progress reports

Do’s and don’ts of delegation

• Select the right person for the job• Don’t delegate on the run• Encourage free flow of information• Focus on the results not the how unless

it is important• Delegate through dialogue not debate• Set firm deadlines and follow up• Give the responsibility to one person-

give them authority to do the job

Do or Delegate?

• A. Approve company logo for work shirts

• B. Approve day off for new Flt. Instructor

• C. Deciding on new software to track student

• flight times• D. Approve vacation for chief Pilot• E. Deciding on offering aerobatic

training

• Answers depend on the situation

Decision making strategy- manager’s need one

• allows a manager to weigh alternatives and select the best course W.R.T. company objectives.

Guidelines for a sound decision-making strategy

• Review company objectives• Diagnose Causes of the issue at hand• Collect data (formally or informally)• Talk to others• Read current publications on the topic• Hire an outside agency for data coll.• Evaluate pros & cons of each

alternative• Select the alternative that best

matches company objectives• Gather Feedback- evaluate if the

decision is working

Business Plans

• All businesses need to have written business plans

• What is a business plan? It is a document that:• Lays out your business goals• Looks 3 – 5 years into the future• Describes the strategies/steps to achieve

your goals

Why have a business plan?

• It can be a sales tool for raising $ (capital)• Prevents lost opportunities• Identifies your company’s goals• Makes it clear what resources are needed

and where• Forces management to rethink all aspects of

the business periodically• Can be used to evaluate performance• Useful in prioritizing• Useful in discussions with outside entities-

accountants, attorneys, auditors, etc.

Keys to a good business plan

• It should be:• Specific- vague plans are useless• Written• Available to all employees• A living document- revisable but only at

set times

A good business plan starts with a “Mission Statement”

• What is a mission statement?- It is a statement about your business that answers the following question:• “Why am I in business?”- Why have one?

• Effective management depends on a general understanding of the business’s primary mission

• It allows the business to stay focused• The mission and objectives determine the need

for facilities, equipment, and personnel

A good mission statement covers:

• 1. Business Purpose• 2. Products/Services (primary)• 3. Clientele served/location• 4. Why you are different-

differentiation/competitive advantage

FBO Mission Statement Example:

• To promote aviation through state-of-the-art facilities, top quality flight training, and access to top-of-the-line aircraft, and to serve the aviation needs of greater Indianapolis area by providing top quality air-charter service, superior line service, excellent maintenance services and a wide-selection of pilot supplies.

Contrast that with:

• To provide the Sullivan county area with friendly and affordable aviation opportunities including aircraft rental, flight instruction, fuel, aircraft hangar and storage facilities, at a neat, family friendly location.

Look for the mission statement at your FBO!

Questions?