Management tools definition with 10 tools and how they work for company

What are management tools?

Let us discuss about Management tools definition with 10 tools and how they work for company.

These are techniques that help decision-making in companies . Therefore, they can be applied to businesses of different segments and sizes. Also, based on them, managers have greater control over the organization’s processes.

10 management tools

So, to help your company’s reality, let’s introduce the 10 most used management tools.

1. SWOT Analysis

Management tool to be used when you expect to have a detailed diagnosis of the company’s current situation.

SWOT analysis, also called SWOT, acronyms formed by the initials of the words that compose them — in English and Portuguese, respectively.

Basically, this methodology analyzes 4 distinct points :

  • S trengths ( F orcas): identifies the strengths of the business and what it has to offer to the market;
  • W eaknesses ( F raquezas): are the weaknesses, represented by the main weaknesses, namely that the business needs to improve to overcome current results;
  • The pportunities ( The pportunities): observes the external environment to identify opportunities for the company and new goals for the future;
  • T hreats ( The meaças): identifies the competitors and the external environment factors that threaten the company’s success, therefore, need to be avoided or treated.

In the context of SWOT analysis, strengths and weaknesses are internal factors. Opportunities and threats are external causes. Therefore, to apply it, it is essential to have a good level of knowledge of the competition and the market.

But when to use this management tool? Especially when leaders want to improve the company’s strategic planning.

Note that the diagnosis can be applied to people management and process management. Whether formulating a business plan or defining a marketing strategy.

Why use SWOT matrix?

To signal what the organization can do best or identify what needs to be improved . Thus, the company is able to achieve better results , such as increased sales or more effective market share.

2. Business plan

The business plan is one of the management tools used to detail the objectives of an enterprise and should not be confused with a business model.

It’s about detailing and step by step to put it into practice. The business model is related to the value that the company wants to deliver to its audience, including its concept, structure, vision, etc.

This management tool allows the entrepreneur to know the variables and invariables of the business, carrying out their projects in an organized, structured and sequential way .

Why use business plan?

It should be applied by companies that want to attract new investors and reduce project risks. This is possible because the business plan offers the manager a clear vision of who will be involved in each activity.

3. 5W2H

In addition to being easily adaptable, this tool offers clarity in the organization of functions , allows for better control of tasks and helps to optimize the time invested in their execution, improving productivity .

Furthermore, it consists of a checklist of activities to be performed by employees of a company. The acronym 5W2H comes from seven questions — in English — used to draw up a list of actions, considered crucial in any planning:

  • W hat (What)?: What is the objective of the project or what action should be taken;
  • W hy (Why)?: Why carry out the project or why this action is necessary;
  • W here?: Where will the project be implemented or where each step of the action plan will be carried out;
  • W hen (When)?: Time taken to execute the project or when this action will be performed;
  • W ho (Who) ?: Who are involved in the project (team) or who are involved in every action (leaders and led);
  • H ow (How)?: How will the project be carried out or how each action should be carried out—the step-by-step;
  • H ow Much?: How much will the project cost or what is the cost of each action — according to the company’s financial possibilities and allowing adjustments before the project is executed, if necessary.

Why use 5W2H?

Because it is considered an easy-to-apply tool that fits into any company, regardless of its size or activity.

The 5W2H formalizes the actions to be developed and prevents any point from being poorly planned or forgotten. Also, its application gives clarity to the details of a project .

As a result, managers have more control over what needs to be done, avoiding doubts or conflicts about responsibilities, deadlines and deliverables.

4. PM Canvas (Project Model Canvas)

Also known as Business Model Canvas, it is considered an easy-to-use tool, generally applied by companies that are entering the market . However, more experienced organizations already use this method.

Popularly called “Business Model Framework”, Canvas works with “cards” that allow to elaborate, test and improve the business model in an organization.

The Canvas project model is a management tool composed of 9 elements that form a table to be filled:

  • Revenue sources: what are the means to raise funds;
  • Relationship with customers: definition of creation and maintenance of bonds with consumers;
  • Customer segments: what is the company’s target audience and what are their needs;
  • Key features: customer value creation;
  • Value propositions: factors that make the company competitive in its market;
  • Key activities: what are the activities directly related to the value propositions;
  • Channels: what are the means of prospecting for customers and how they will contact the company;
  • Cost structure: elaboration of a descriptive and detailed map showing the company’s expenses;
  • Partnerships: defines the relationships that will be established with other companies or people to make the enterprise more competitive.

Why use PM Canvas?

Because this methodology offers a macro view of the entire business , helping the manager in planning and controlling the main areas of the organization.

PM Canvas is used because it is a fully collaborative project management tool that can be applied in situations where the company develops group projects.

That way, as the project progresses, each participant can update the cards so that the group has a big picture.

5. Six Sigma (DMAIC and DMADV methodologies)

Its purpose is to analyze the performance of a company . With this management tool, it is possible to test and qualify processes, products or services.

In this sense, good performance factors include process efficiency, waste reduction and the correct application of resources in each task. The Six Sigma is applied by two different technologies. Follow up!


Used to improve processes that are already carried out in the company. There are five steps defined by action verbs:

  • D Setting tim: time to establish which processes, products or services need to be improved;
  • M ensuring: evaluation of the main aspects of the project, its performance and the cause of waste;
  • To analyze: at this stage, corrective actions are proposed;
  • I ncrement: the corrective solutions proposed in the analysis stage are put into practice to standardize the work and optimize the process;
  • C ontrol: opportunity to verify results and monitor processes with control systems.


Unlike DMAIC , the DMADV model is for new projects, products or services not yet launched by the company . Therefore, it is also divided into five steps:

  • D Setting tim: set goals as the company ‘s strategy and the opinions of customers;
  • M ensuring: check the chances that the established goals have to work. For this, use quality indicators, such as risk analysis and quality of products and services;
  • To analyze: based on the results obtained in the measurement stage, find strategies that offer the lowest risks for the project’s success;
  • D edraw: detail and test the project’s feasibility, in addition to creating action plans for areas that need adjustments;
  • V erificar: In this final step, the product or service is available on the market and the results are monitored.

Why use Six Sigma?

Because it is not only suitable for complex processes, but for simple issues, such as reducing fixed costs – water, electricity and telephone – or to reduce the lead time of processes.

As a result, your company will have better performance, satisfaction and customer loyalty .

6. PDCA cycle

The purpose of this tool is to implement changes to keep improvement constant, using a 4-step cycle. This sequence must be restarted periodically to achieve the expected results:

  • P lan (Plan): prepare the plan to be followed, considering data and information;
  • D o (Do): step to execute the plan according to the defined specifications;
  • C heck (evaluate): collection of information concerning the results obtained. Here, there are mistakes and successes in relation to planning;
  • A ct (Act): with the results of the assessment, it is time to decide which procedures will be routine in the company and what should be reviewed before the next PDCA cycle .

Why use PDCA Cycle?

It is a management tool that qualifies the organization’s processes and corrects any errors found .

As it is applied in cycles, the methodology is repeated as many times as necessary until the company’s procedures reach the desired level of quality.

The PDCA Cycle is used to reduce costs, train employees or organize the organization’s workflows.

7. BCG Matrix

The BCG method emerged in the 1970s and is a reference to the company that created this management tool, the Boston Consulting Group, which is still used today.

Based on graphic analyses, managers are able to make strategic decisions for each product or business unit right.

It also consists of a 2×2 matrix that makes it possible to assess the company’s portfolio from the life cycle of each product. To do so, it considers the product’s growth rate and market share. The result is the best competitive assessment against the competition.

Each quadrant of the 2×2 matrix is ​​represented by symbols, as follows:

  • Stars: Products that sell well, have good market share and are accepted by consumers. Therefore, they have a good growth rate;
  • Question marks: represent products recently launched by the company, but with market potential. But still with low participation and do not generate profit. Therefore, managers classify them as unknown and seek to develop actions for them to change their position in the BCG matrix;
  • Dairy cows: are those products that are already stable in the market, with a low growth rate, but with a good share. They offer good profits and require low investment, becoming the base of the company;
  • Pineapples: products with little or no expectation of being successful in the market. Generally, they don’t sell well, don’t make a profit, nor do they have a good share. Therefore, it is the “pineapples”, which lead the manager to take the decision to withdraw them from the market or recover them.

Why use BCG matrix?

Because it is the best tool for companies that work with multiple products or services . It allows you to direct efforts and investment towards what really matters to the organization.

The BCG matrix is ​​used when it is necessary to reassess the company’s market share, to analyze how to better apply resources or achieve better results.

8. GUT matrix

Widely used to establish priorities in the organization , the GUT Matrix prioritizes the most relevant tasks for the company and defines which ones should be performed first. Thus, three aspects are considered:

  • G ravidade: impact that the problem generates in involved, whether employees, processes, tasks or results. Here, the manager analyzes the effects of a problem and its consequences in the medium and long term;
  • U rgency: represents the deadline or time available for solving a problem, that is, the shorter the time, the more urgent the solution should be;
  • T endência: analyzing the possibility (or potential) of the problem increase with the passage of time. It is a kind of prediction of the evolution of this setback.

Why use GUT Matrix?

It is one of the easiest management tools to apply, just structuring a table where the company’s problems will be listed.

The next step is to classify them according to the matrix variablesseverity, urgency and trend .

Finally, establish scores for each variable, multiply them and consider the highest result as the priority action to be taken.

9. OBZ Model (Zero Base Budget)

Management tool directly linked to the company’s budget planning , with the objective of defining the minimum financial resources to achieve goals.

The OBZ strategy considers that, when preparing a conventional budget , many companies consider that the expenses of the last fiscal year will again be the same. Also, all revenue targets will be met.

This is a mistake, as it generates a budget out of step with the organization’s strategy, as the numbers were not analyzed in detail.

Why use the OBZ Model?

This tool is used to create the budget plan for a certain period without considering the income, costs, expenses and investments of previous years.

As a methodology focused on financial planning, in addition to its unique features and configurations, the OBZ Model is very useful for organizations of any size or segment.

10. People Analytics

It is a management tool that uses statistical data from employees to make decisions , both from HR and from area managers .

Therefore, it is related to data that collects, organizes and diagnoses the teams of a company, using software capable of crossing information from different sources.

The goal is to optimize human resource management , which is why People Analytics is also called talent analytics or HR analytics.

Why use People Analytics?

Because the tool helps managers and leaders to make more assertive decisions about their employees or their work fronts.

Thus, leaders are able to closely and almost immediately monitor certain factors, such as productivity, engagement and satisfaction of the company’s human resources.

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