- What is a management model?
- How are management models useful?
- When would you use a management model?
- Can management models be dangerous?
- Can a management model make a decision for you?
- In which areas of business can a management model be used?
1. What is a management model?
A management model is a tool that is generally used to help you to simplify and analyse complex business situations, to facilitate decision-making. Most models offer you the opportunity to brainstorm and analyse your business to get a better sense of where you are right now and where you might want to be instead.
2. How are management models useful?
Most management models provide you with the opportunity to take diverse and complex situations and compact and simplify them into a summary that can be more easily understood. If models are used by a group or team, they offer an opportunity for debate and different input from lots of people in a structured way, giving a broader overview of a business decision.
3. When would you use a management model?
You might use a management model when you have a complex situation to analyse that involves considering many different pieces of information.
4. Can management models be dangerous?
There are some implicit problems with management models. By the nature of the fact that you are simplifying situations, you need to bear in mind that models do not always portray a complete and accurate reflection of what is a complex world.
Also, models can only be as informative as all of the input parts. If the thought process that goes into using the model is inadequate or incomplete, then the model will not give a full and accurate picture of the options that might be available. And just because a model is used, this doesn’t mean that the correct decision will be taken by companies after analysing the information.
Models also need to be used by applying them to the appropriate kinds of situation, information for which is provided in this topic.
5. Can a management model make a decision for you?
Management models most certainly cannot make decisions for you. They simply provide a structured approach to the thought process that is used when weighing up all of the factors that are relevant when taking a particular decision.
6. In which areas of business can a management model be used?
There are models to assist with the simplification of pretty much every kind of management decision that needs to be taken, including
- Financial planning
- Change management.