Issue 24

Why Invest in Professional Management?

Dan Schipor
Management Partner
@Casa de management Daris


Recently, the macroeconomic forecasts seem rather positive for Romania. The latest news in this line talk about one of the greatest economic boosts in Europe, about the significant enhancement of the country rating by one of the most important global rating agencies and about a new law regarding the non-taxing of profits that are reinvested into technology.

I personally believe that all these positive news and forecasts will have an intense effect of accelerating the investments in Romania. The only factor that might stop or even contradict the positive previsions would be the escalade of conflicts in Ukraine. In the hope that such a thing will not actually happen and considering as hypothesis the positive perspectives we have talked about, I would like to draw your attention on the investment that each company should make into professional management.

Unfortunately, as I have also mentioned several times until now, the management positions in the Romanian companies were rather a way of awarding the people who had excellent results in other domains (sales, administration, financial, etc.), instead of representing the backbone for the functioning of the organization. The companies would focus all their efforts on the sales, purchases or investments into technology and would largely neglect the sustained investments into the creation of a performant management structure. The single signs of such a concern were related to sending some people to some courses or training, actions which were also seen as a reward or a way to align to what the others were doing and less as a minded and sustained investment into the creation of an organizational structure which could provide consistency to the company results.

I know that from the financial-account perspective or even from the perspective of managerial finances, the financial resources used for the creating a professional management structure are not seen as investments, but rather as costs. Anyway we put it, it is compulsory for us to allot time, effort and financial resources for the creation of such structures within our organizations. Failing at this, the benefits from the positive influences of the macro-environment can quickly vanish, the investments we make into technology or other domains will not be adequately turned to profit, the organizational climate can deteriorate, having negative effects on the long term perception of the organization.

I know it is a difficult thing to do, when some of the organizations can hardly find the necessary resources for the current work capital, both financial and human. To allot an important share of resources of time, effort and money to management seems rather difficult, all the more so as professional management is sometimes hard to identify, being seen rather as something abstract, which depends a lot on the perception and context. Professional managers know things are not like that. For all the others, I would like to point out the things that the investment into professional management can bring to the company: more stability on the medium and long term, higher predictability of results, harmonious development and efficiency with no stress or unnecessary risks, much easier acquiring of financial and quality human resources, respect from the competition, the employees and partners, etc.

Therefore, whenever you make development plans, do not forget to allot an important part of time, effort and money to the creation of a professional management system in your organization. Any investment into professional managers, done through trainings or coaching systems, management structures, tools or systems, courses or management consultancy, will surely pay off. A professional manager will be able to prove this even before the investment is made.



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