To succeed in business, you need intelligence, vision and the ability to communicate. But according to Ram Charan in his new book “Know-How: The 8 Skills that Separate People Who Perform from Those Who Won’t” there is another element that is critical to succeed in business: the know-how of running a business.
There are some people who may talk well and appear to possess great leadership skills — but in reality, are nothing more but rhetoric and hot air. These are the people who dream big but always ends with nothing. A successful entrepreneur needs “the capacity to take it in the right direction, do the right things, make the right decisions, deliver the results, and leave the people and the business better off than they were before.”
So what are the eight know-hows every business person must have to succeed? Here is the author’s list:
- Positioning and Repositioning. Getting into the right business that meets customer demands and that makes money.
- Pinpointing extrenla change. Understanding what is happening in the business environment and competition to put the business on the defensive.
- Leading the social system. Getting the right people with the right behaviors and right information working together for the business.
- Judging people. Hiring the right people to do the job.
- Molding a team. Getting all these talented individuals to work seamlessly together, never mind the egos
- Setting goals. Determining the goals that the business can realistically achieve
- Setting laser-sharp priorities. Defining the path and making sure all the resources, actions and energies are allocated to reach the priorities
- Dealing with forces beyond the market. Knowing how to anticipate and respond to the market particularly to events and pressures you don’t have control over but may affect the business