Should SMEs go for 'Managing by Walking Around' strategy? 

Most small and medium businesses lack the funds to employ specialized managers for every department. It is why SME owners need to actively engage themselves in the day-to-day activities of their business. They must retain close control over different aspects of activities and establish interpersonal contacts with the employees to  keep a finger on the pulse of their business. Managing by Walking Around (MBWA) could be, in this scenario, a very effective management tool and leadership technique for small business owners.

Looking back
The story of the MBWA is as interesting as the concept itself. From 1979 to 1980, two American management consultants - Tom Peters and Robert H. Waterman Jr.- surveyed 43 super successful companies from six major industries in the US and concluded with eight core principles for excellence in their co-authored classic 'In Search of Excellence'. Immediately the book created a flurry of excitement in the world of business and its affect was such that a generation of American CEOs, business owners, and managers throughout the 80s was influenced by this groundbreaking book.

The authors of 'In Search of Excellence' introduced eight success factors they found responsible for the success of some super successful corporate giants like Hewlett-Packard, IBM, and McDonald's, to name a few. Among the eight success factors, the authors identified the Management by Walking Around (MBWA) as one of the basic characteristics of excellent companies. However, MBWA lost some of its appeal in the 1990s when most of the companies surveyed  and cited by Peters and Waterman in 'In Search of Excellence' started under-performing. But in the late 90s and early 2000s, the concept was resurrected again - this time in some different forms.

What does MBWA mean?
Simply speaking, Managing by Walking Around or MBWA is an informal top management practice which encourages managers (or business owners in a SME environment) to be out of their offices, make informal visits to work area and spend a dedicated amount of time with employees keeping direct touch with them. MBWA makes leadership more effective and helps to keep a finger on the pulse of the organization.

How to implement MBWA strategy? In his second book, 'A Passion for Excellence', Peters mentioned that at least three things are required to be done to implement MBWA effectively:  

• Listen to what people are saying.
• Use the opportunity to transmit the company's value face to face
• Prepare to give people on-the-spot help.

While incorporating MBWA into your daily schedule, it should not be an excuse to spy on employees. In contrast, one needs to be less critical, look for victories rather than failures, try the best to send positive messages to the employees, and more importantly, consider MBWA as an opportunity to strengthen the relationship between employees and management. Also, to make the strategy meaningful, MBWA must be carried out in regular basis.

Is MBWA still relevant?
Today, some people consider MBWA as an old idea despite acknowledging the fact that the effect of 'In Search of Excellence' was great at the time it was written. After all, how can it be relevant in today's fast paced world of business where information speeds like light, where the concept of remote and virtual offices has become increasingly popular. Why should you bother walking around if you can make a telephone call or send an e-mail? Who has the time to visit the employees to listen to them?

Of course, time has changed but it is still important for managers and owners to know what's changing with their employees' desire to deliver results.  Especially for entrepreneurial companies, MBWA can still be a very effective management and leadership tool to achieve harmony with employees through face-to-face contact, collect qualitative information and keep track of current operational developments. So, the concept of MBWA is as valid in 2009 as it was in 1982, and, in fact, in today's businesses environment we can further extend it scope from just 'walking around' to different informal management skills, tools, and techniques.     

What are the advantages?
How could SME owners benefit by implementing the MBWA strategy? In most SMEs, the top and middle management isolate themselves from their employees. Sometimes the owners get so focused with sales and marketing efforts that they turn their offices into fortresses. As a result, they often fail to recognize how important it is to take care of the workforce. It is why  incorporating the MBWA strategy is very important for a small business. There are many advantages that accrue to a SME which practices Management by Walking Around or MBWA -

• Firstly, when you get out from behind the desk and interact with your employees, you can obtain a much better idea of your employee's problems, perceptions and skill sets. In addition, your employees are more likely to make an effort to give their best if they know that you may pop up at any moment.    

• Secondly, by practicing MBWA, you can communicate better with your workforce. When the owner enters the workspace, it demonstrates his respect for employees. Besides, walking your business regularly can make it easier for employees to open up to you about all types of issues like 'office politics' or misconduct of a manager.    

• Thirdly, interacting directly with your employees facilitates a small business owner to use the power of appreciation. When you take time to talk to and thank your employees for jobs well done, it motivates them to perform better. Appreciation does not cost anything but it plays a big role in boosting the morale of employees and reinforce their commitment.

• Fourthly, every time you walk your business, you can look for opportunities to improve - you can notice happenings first-hand and understand in which areas improvement is required. While receiving input and feedback, you can give constructive comments without being openly critical.

• Finally, as everyone likes to be a part of something greater than merely one's job, MBWA can be very helpful in making your employees feel that they are part of a team with a common goal to achieve.  
  

In any business, especially in a small business environment, it is not an ideal way to do business keeping oneself shut inside an office and evaluate the world filtered through a secretary. The net effects of communicating directly with employees, making them feel appreciated and motivating them to achieve a common goal as a team are the advantages MBWA facilitates small and medium business owners for efficient management and effective leadership.