AST 205 Chapter 2 Notes

1. AST 205 Chapter 2 Notes Management and Business Plans “The path of least resistance leads to failure”

2. 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

3. 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.

4. Four functions of management ctn. • Directing- Delegating and Motivating • Controlling- Evaluating and Taking corrective action

5. 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

6. 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

7. 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”

8. Delegation • What is it? • -Frees up managers time • -Encourages a sense of responsibility • -Fosters employee development

9. 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

10. 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

11. 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

12. Decision making strategy- manager’s need one • allows a manager to weigh alternatives and select the best course W.R.T. company objectives.

13. 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

14. 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

15. 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.

16. 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

17. 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

18. A good mission statement covers: • 1. Business Purpose • 2. Products/Services (primary) • 3. Clientele served/location • 4. Why you are different- differentiation/competitive advantage

19. 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.

20. 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.

21. Look for the mission statement at your FBO! Questions?