All management is based on guiding principles; and the effectiveness of management derives from those principles. This is true whether the principles are appropriate or inappropriate, reasonable or unreasonable, consistent or inconsistent. Similarly, the derivative nature of management holds whether the guiding principles are vague or well-defined, followed faithfully or haphazardly, applied day-to-day by managers who are highly skilled or fundamentally incompetent. Effective management, then, is a product of:
- Guiding principles that are appropriate, reasonable, and consistent;
- Managers who clearly understand the guiding principles, faithfully adhere to them, and who are fundamentally competent.
It follows from this that the effectiveness of an organization’s management is a product of the Principle/People equation:
- Principles + People = Outcomes. …