What is the short interval approach to management?

Posted by on October 5, 2009 · Leave a Comment 

The short interval approach to management is the reduction of the process of management to the shortest possible meaningful cycle. The shortest meaningful cycle is defined as that period of time where the most complete business information may be generated to support profitable decisions. This period is usually defined as a week. A week is the shortest time period within which most business can gather useful information about their company’s performance and act on that information.

Most businesses run on a weekly schedule. We have weekly project runs, weekly schedules. We usually think in terms of weeks. And, the largest expense item for most businesses is usually incurred in a week, payroll. And, because we think in terms of weeks, plan our businesses by the week, direct and schedule our employee’s tasks and duties by the week and spend money by the week, it makes sense to “manage by the week”. In fact, management by objectives, which organizes control in the business management system, is best applied as “management by the week”.

Weekly objective cycles of planning and evaluation, planning and follow-up, are the most effective and the most economic; therefore the most productive, the most profitable, for several reasons. A weekly planning and control cycle assures an optimal impact on direction and control for the manager. A weekly management cycle optimizes the control of results because it is a long enough period of time for meaningful achievements to occur and a short enough period of time to assure everyone’s complete cognition of what results were expected, what tasks were delegated, so measurement and evaluation are the most effective. A week is an efficient time period for follow-up. It is also a short enough time period for follow-up to be purposeful in assuring that the business enterprise does not squander too many scarce resources on inappropriate, ill-defined plans, actions or strategies.

The weekly cycle assures the economic process of management and fosters the productive application of decision-making and action. If we are going to examine our course of action, our decision after a week, we know today exactly what we have to risk, if we are wrong. Knowing what our exposure is in the future renders decision-making risk free and promotes action, promotes pro-action. Instead of reacting to events by believing that we cannot impact on their outcome; we act to assure events and control the outcome of the event.

This is very efficient and it is very economic, because we don’t waste resources and we operate in a risk free environment. Both of these realities reduce cost. Anytime you reduce costs; you increase profit. It is also efficient and economic because it increases management’s focus on the processes and procedures, the systems, which generate profitable results. It focuses; it intensifies focus on results, on expectations, and anytime you increase your attention on any desired result; you have a better chance of “making” it happen.

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