Creating Success for the New Year
YOUR
ANNUAL
BUSSINESS
PLANNING
SESSION
By Dean R. DeLisle
One of the most
important planning tools for a CEO or president is an end-of-year review and
goal-setting meeting. The purpose of the meeting is to learn from the prior
year and create a business objective and goals for the next year. It’s a
time to reflect on what was done right, look at what could have been done
better, and define your business goals for the coming year.
Ideally, this review
should be held before the end of the calendar year and all key personnel
should be present. An annual review takes considerable planning. Here are
the four phases:
1)
Planning the meeting: who, when
and where
It is best to hold the
meeting off-site and away from normal business operations. Most times a
resort area with meeting rooms and a recreational atmosphere for evening
activities can be ideal. Regular breaks should be scheduled and cell phones
turned off during the session. Some companies schedule the meeting over a
weekend and allow spouses to attend. This format may involve a social event
as well.
Ideally, the annual
review meeting should be at least a full day event that takes place in the
first two weeks of December. Taking one day to iron out the goals for the
coming year can save you many days of guessing and adjusting on the fly in
the months to come. An hour or two is not sufficient time to plan your
attack for the coming year or for the first quarter. Many companies get
caught up in the fourth-quarter rush as they close the books and complete
the business for the year. They then try to “fit” in the game plan for the
first quarter and don’t even attempt the entire year. They actually spend
more time planning a week-long vacation then preparing their company for
first quarter profits. Obviously, this can be dangerous and costly.
Even if your company
does not have a history of dysfunctional meetings, consider hiring a
moderator. They help to keep the meeting on track and on time, but more
importantly a moderator ensures that all voices get to join the
conversation. A moderator helps you get the most out of your collective
brain trust.
All key personnel
should be present and each person should be given time to participate in the
agenda. When employees get a chance to join the conversation, they feel
valued and take ownership in the final outcome.
2) Set the Agenda
Typically, the meeting
begins by focusing on the previous year’s lessons, then moves to top-line
company objectives and, lastly, to departmental objectives. This format
allows the entire team to get aligned with what worked well in the previous
year, and how to best apply those lessons for the upcoming year. Here is a
sample meeting schedule:
Lessons from Prior Year
·
Discuss
lessons learned
·
Discuss
open or unresolved issues
·
Define
accomplishments
Goals and Objectives
for the coming year
·
Discuss
top line goals and objectives
·
Project
economic forecast
·
Chart
direction of the business, including changes to structure, roles,
responsibilities, management and employee growth.
·
Define
final goals
Marketing
·
Define
goals
·
Rework
your SWOT Analysis
·
Clarify
your lead sources and volumes are in line with projections
·
Verify
that targets and postion have not shifted
·
Identify
your position with economic adjustments
·
Validate
which systems can be improved
·
Set
accountability timeline, targets and measurements
·
Create
action plan
Sales
·
Define
Goals based on previous sales, and realistic forecasts
·
Adjust
lead distribution policies
·
Verify
call, appointment and proposal thresholds
·
Test your
team for the right mix of closers
·
Gain
valuable feedback from customers’ experience
·
Validate
which systems can be improved
·
Set
accountability timeline, targets and measurements
·
Create
action plan
Operations
·
Define
Goals based on customer and employee experience
·
Review
surveys taken on your customers
·
Review
surveys taken on your employees
·
Realize
necessary efficiencies
·
Identify
changes in your organizational structure
·
Verify if
training programs were effective
·
Validate
which systems can be improved
·
Set
accountability timeline, targets and measurements
·
Create
action plan
Finance
·
Define
Goals based on results from the Profit and Loss Statement
·
Realize
if you watched the right numbers at the right frequency
·
Identify
if budgets were realistic
·
Review
your cash flow and understand what needs to change
·
Review
your product or service pricing
·
Understand how well you handled operational costs
·
Validate
which systems can be improved
·
Set
accountability timeline, targets and measurements
·
Create
action plan
Wrap-up
·
Visibility and Benchmarks
·
Summarize
the clearly defined goals with timelines, targets and measures.
·
Validate
that they are aligned with the bottom line goals of the entire organization
·
Agree on
thresholds and tolerances
·
Agree on
platform to measure reports and Web based metrics
·
Clearly
define next benchmark dates for accountability to the plan
End the meeting by
having an event celebration. Do not leave this part out! Celebrating
successes as your company is preparing or experiencing growth keeps the
entire team engaged and connected. It is highly recommended that your
company has targeted milestone celebrations throughout the year. However, if
your company only has one social gathering a year, it’s best to include it
at the end of this annual planning session.
3) Prepare for
the meeting
Prior to the
meeting, the CEO and business leaders should define clear objectives and
goals for the upcoming year. Consider these goals as a springboard for the
meeting; keep an open mind to change or revision of the goals during the
meeting.
Remember that a goal
contains three critical elements. 1) it is measurable, 2) it is a specific
accomplishment, and 3) it has a time frame. Try to set measurable, specific
goals that have deadlines. This way you can hold your departments
accountable for meeting clearly defined objectives. Be sure that all the
goals and objectives are written out and distributed soon after the meeting
to all employees.
Department heads and others attending the meeting should have facts and
figures prepared on their department in advance of the meeting. A
preliminary memo should be distributed with a clear agenda stating the
objectives (as shown above) at least 30 days prior to the meeting. There
should also be weekly countdown reminder emails sent reminding the other
leaders in your organization this critical time is approaching. This is
typically a very busy time of year for most companies and it is common for
distractions both business and personal to interfere and cause the
preparation of materials to get rushed. This can cause some of the most
critical components to get overlooked.
4) Following up
after the meeting
The CEO,
president and/or executive vice presidents are ultimately accountable for
the goals that came out of the meeting. It’s critically important to revisit
these goals on a weekly or monthly basis with all department heads.
Developing accountability checkpoints and engaging in frequent dialog about
meeting the goals will get you to them.
As part of the follow
up allow your plan to be flexible in certain situations. When low cost
opportunities to add value or generate revenue present themselves, consider
an on-the-fly adjustment to your goals. Don’t let good opportunities pass,
simply because your planning did not account for them.
With a clear plan, your
goals can be achieved. Successful companies hold this planning meeting every
year. Challenge your employees with new goals. Without challenges we only do
what we’re used to doing. Is this your year?
Dean R. DeLisle is a
business advisor with Forward Progress, Inc. He has more than 25 years of
service experience and works on strategic growth with over 300 clients.
Previously, Dean has owned and advised other leading service-based
businesses with clients such as Merrill Lynch, Sears, All State, General
Growth Properties, Chicago Mercantile Exchange, MBNA and State Farm.
Copyright © Vistage International Inc. All
rights reserved. |
