Gone are the days of just expecting an employee just to “do their job” and be happy about it.
I think everyone would agree that having the right strategy is important if you want to maximize your chances for success.
Yet, I find many small businesses not maximizing their chances of success - at times even unintentionally weakening their chances for improved results, greater profit and more sales.
It really comes down to getting two critical areas right:
- Having a clear strategy
- Executing on that strategy
In my last blog post, “Seven Signs You Need A Business Operating System”, I called out the seven signs or problems that indicate you need a business operating system.
We’ve all heard of a computer operating system or “OS”.
The computer OS manages the hardware and software resources of the computer and provides a common language by which each component communicates with each other. If you access the right area you can see all the processes which are running on a computer. Some processes actually drain resources and can slow a computer down.
No new software or component can be installed unless it is compatible with the OS.
When the OS gets corrupted, the computer slows down or even worse, it crashes. To fix the problem, the only solution is to reboot and install a new OS.
There are a lot of parallels between a computer and your business.
Company goals are ineffective when those goals remain trapped in the minds of leadership - even worse when they stay trapped in the mind of one person.
When this happens, the rest of the team is left to guess what the most important priorities are based on very little information.
In order to operationalize a company’s goals, those goals must cascad down throughout the organization. They must be translated into the monthly, weekly and daily actions of the team members.
Makes sense right, but exactly how do you do that?
This blog post is meant to offer a step by step process for cascading company goals down to departmental goals, then further down to individual goals.
December is the month that many companies hold annual employee performance reviews.
Built into these reviews is an employee expectation that a positive performance review will result in some sort of pay increase or raise. Often, owners have a set amount of money which they have discretion to allocate based on the performance review.
If you search Google for “annual performance review and raise” you’ll notice that the top 9/10 results all focus on helping employees ask for a raise. Only one article talks about how performance reviews and raises shouldn’t be linked.
This blog post is for those dedicated businesses that are tracking KPIs (key performance indicators).
When I say “tracking” I mean that you have a set of meaningful measurements that you are reviewing with your team on at least a monthly basis. You may have multiple Excel spreadsheet or Google Sheets that you are using to keep track of all sorts of critical metrics.
If you’re not tracking KPIs, I would encourage you to do so ASAP. If you need help determining which KPIs to track, please contact us and we can help.
For example, last week we helped a $12M manufacturing company determine the right KPIs based on their strategic plan.
Please reach out if you need help. If you're not sure why tracking KPIs is such a big deal, please read this post on how we helped one company increase their profit by 135%! KPIs work.
I am sure that you agree that in order to maximize business performance, each employee must be in 100% agreement with the company’s goals and vision.
If you're frustrated and feel that your team is not rowing in the same direction and aligned, you’re not alone.
Tracking KPIs (key performance indicators) is a real competitive advantage for a small business. No business magically drifts into a better version of itself and KPIs can help to ensure your team is executing on your strategy and driving the results you expect.
But what about strategy? But when we talk to small businesses about strategy, the concept can be confusing and strategic planning can sound like a time consuming process to time crunched CEOs.
An efficiency measure, normally OEE, is one of the first KPIs most manufacturing organizations aim to put in place. Unfortunately, common implementation mistakes can lead to major missed opportunities.
There are three mistakes that are so frequent, that they are the rule rather than the exception.