Is your business achieving “peak performance”?
You may have a business that has been able to survive the challenges of the marketplace so far, but is it reaching its full potential and generating the results you’re looking for? Here are 5 keys to help ensure you’re getting the most out of your business now and will be able to increase the value in the future.
1. Share the Vision
To achieve extraordinary results, you have to be able to articulate your business purpose and share it with your entire team. As Simon Sinek so beautifully explained in his book, “Start With Why – How Great Leaders Inspire Everyone to Take Action”, defining your “Why” will set your company apart from the competition. Most business owners are passionate about “Why” their company exists and how they want to make a difference in the world. Where they struggle is in getting their team members to share that vision and to see it as a higher calling. It must be communicated constantly – starting with the onboarding of new hires and continuing through regular team huddles and planning meetings. Over time, the vision will infiltrate the entire firm culture.
2. Have a Written Plan
Having a one page annual strategic plan will dramatically improve your odds of building a business that achieves peak performance. There is something about the process of developing a written plan that will unite your core management team around common aspirations and goals. I’ve been amazed to see how getting team members involved in the planning process can bring fresh energy and purpose as they face dangers and opportunities together. Everyone in the company should receive a copy of the written plan and understand how they contribute to helping the business succeed. The written strategic plan must be updated annually to ensure the company is focusing on the most critical challenges each year.
3. Hold People Accountable
Once the written strategic plan is created, individuals must be assigned specific tasks and deadlines to ensure that the goals will be reached on time. 90 day game plans will help owners and managers stay focused on what they are responsible for. The main role of the CEO is to monitor progress and help each person be successful in their area of responsibility. While many tasks will involve multiple team members, there must be one person who takes the lead and is held accountable for each initiative. The facts are indisputable, businesses that have a written plan are much more successful than those that don’t.
4. Manage Finances and KPIs
In order to know if you are winning at the great game of business, you must keep score. Keeping score is much more than just having accurate financial statements each month (which are a must). It’s about monitoring and managing key trends and other financial metrics. It’s also about forecasting cash flow, financing needs, capital expenditure budgeting and business growth. There are also drivers working behind the financial numbers that need to be measured and managed. They’re called “Key Performance Indicators” (KPIs). These unique metrics track performance in every aspect of the business, from marketing and customer service to production efficiency and customer collections. What you can measure, you can manage.
5. Continually Improve Systems
To achieve peak performance in today’s world, a business must be continually striving to improve internal processes and systems. Businesses that don’t stay up to date will find themselves struggling to survive. In recent years there have been amazing advancements in technology that can help improve the bottom line when fully utilized. While cloud accounting systems are taking over, it’s the custom applications (apps) that allow the small business to have the same management tools as the big boys. The Lean Six Sigma process improvement system can also help any business improve efficiency and eliminate waste. By constantly improving your processes (working on your business), you’ll be making an investment that will help achieve extraordinary results and increase the value of your company.
LSL is committed to helping our small business clients succeed. That’s why we created the P3 Group. The P3 Group of accountants and advisors want to be your Peak Performance Partners by providing, compliance, performance and strategic services that will help your business reach its full potential and run smoothly with, or without you. Contact us to schedule a free consultation and business performance assessment.
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