Contributed by Jeff Meade, founder and CEO of MEADE, a management consulting firm.
Success. Every business owner wants that, especially after the economic roller coaster and the 2020 reset. However, most entrepreneurs have spent the past year in survival mode, not planning mode. . Now, it’s time to look ahead again. Chances are you used the pandemic as an opportunity to re-establish your business and redefine success. The best way to do that at this point is as entrepreneurs we should turn to a growth mindset.
How do you switch from defensive to offensive? One method is to focus on the indicators of your company’s business success by way Create a single business score card.
The concept of the balanced scorecard approach is not a new one: it is First introduced by Harvard Business Review almost 30 years ago. The scorecard is essentially a “health report” for your organization. It allows you to gauge how close to your goal is. In addition, it lets your team members know at a glance how their performance relates to the overall scorecard report, keeping talented, motivated players.
All business scorecards must reflect company finances, customer interactions, internal workflow and development / learning initiatives. More specifically, the scorecard should include the following five success metrics to help your business grow and achieve its goals.
1. Employee motivation
I will say clearly: Motivating remote groups difficult. When people are not together, they can lose their sense of purpose. (If you’re not sure how separate your employees are, Vega Factor has a survey you can use to measure engagement.) Therefore, you need to make sure your employees know. They are valuable because they help your organization innovate. How can you arouse motivation? Remind everyone about your organization’s BHAG (short for “Big Hairy Audacious Goal”). Be clear about how they contribute in response to BHAG. Seeing the way forward gives everyone on your team a long-term perspective beyond current responsibilities.
2. The rate of periodic business
As part of the planning and scorecard process, determine your revenue level. Find out what percentage of your sales will recur next year with no effort at all. The money you give should be based on old data unless you join a startup. Even if you’re the leader of a newer business, you can still figure out a floor of sales. Calculating your trading rate will show you how much money you can put into strategic investments. It will also give you an idea of how far or near it is for your annual forecasts.
3. Career development hours per employee
Workers do not continuously improve skills the risk of personal and professional stagnation. They are also more likely to leave for greener meadows. So keep track of how many professional development hours you spend on each team member. Ideally, the number should increase quarterly.
Not sure what kind of seminars, classes, or certifications your employees need? Give them a say in this matter. Personal Development Plan (IDP) for each person. The IDP will be developed by both team members and group supervisors, answering questions like “Where do I want to be?” and “How do I get to the next level of professionalism?” Monthly subscription can ensure that IDP is followed throughout the year.
Build a long-lasting, sustainable organization where people feel comfortable bringing their whole self (and ideas) into their work. an inclusive environment. In our company, I use ranked methodological surveys to track in-depth growth over time. For example, I will submit surveys and ask staff to rate answers on a scale of one to five. Some of my favorite survey questions include: “I belong here”, “I believe management respects everyone equally” and “I can express my opinion here. without being affected. ” Allowing people to quantify their emotions highlight potential problem areas, helps us improve inclusion in our workplace.
5. Profitability per customer
The last item that must be on your business score card is profitability per customer. This involves seeing each customer alone, not just part of your customer list. Why? Honestly, you don’t want to pay for the privilege of having customers. That’s not good for your revenue. The simplest way to calculate profit per customer is to consider gross profit per customer, which is revenue per customer minus cost of sales. You may be surprised at the customers that are not profitable for your business – and that are consuming your resources.
The past 12-15 months may be the toughest month of your career. However, you can bring your business back to success. Just pay attention to your metrics, follow your organization’s equilibrium scorecard model, and help everyone on your team. work together to achieve common success.
Jeff Meade is the founder and CEO of MEADE, a management consulting firm. At MEADE, Jeff relies on his many years of marketing experience to provide small and medium marketing service companies and internal marketing teams with reliable advice needed to scale their business and performance. Prior to taking on his consulting role at MEADE, Jeff established and scaled up his own dealerships, including Mjini, a Millennial and The Reason consumer insights agency, both work with Fortune 500 companies and household brands. Jeff also served as marketing director for VILLA – named retailer of the year at Complex during his tenure – and taught marketing courses at UCLA. Jeff lives in Dallas with his wife and three children.