The formation of a methodology of a supporting of a development of an enterprise management system is a direction of the author’s research. As part of the study in this work, it seemed appropriate to present the author’s point of view on understanding the place of management in a modern industrial enterprise. In management theory, interpretations of similarities and differences in the contents of the terms “management” and “administration” are found. In this work, a comparative analysis of the concepts of “management” and “business administration” is carried out. In determining these concepts, the functional content, essence and relationship of management and business administration in the enterprise are highlighted. Based on the analysis, the management potential is formed. Management aspects of the activity are identified as such potential. As a working environment for the implementation of management potential, flows are defined. The main flows constituting the activities of the enterprise are presented. A stream visualization tool, the Senkai diagram, was brought in. The visualization of the flows made it possible to identify the area of application of the management potential, both for solving the current practical problems of the business and for the development of the enterprise management system.
It is proposed to consider the results of the study as an approach to solving the urgent problem of streamlining an expensive managerial resource in the enterprise. The analysis of the achievements in solving this problem, published in domestic and foreign literature and related to overcoming the existing state in the management activities, is carried out. The causes of the problem are highlighted. An analysis of the reasons led to the conclusion that, within the framework of the existing approaches to management, the manager cannot carry out full-fledged effective activity. A generalization of the research results made it possible to identify the main directions for solving the problem. Mostly this decision is expressed in increasing the effectiveness of the actions of officials at different levels of the hierarchical structure, that is, in the chain of relations “leader - subordinate.” In this study, the author proposed an approach to solving the problem, which consists in eliminating the overlapping responsibilities of managers at the hierarchical levels of the administrative structure. This approach involves the transformation of the structure.