“Are you ready for 2009?”
I my line of work, I find nearly all businesses are using the “Hope Plan” as their core strategy. The hope plan goes something like this:
I hope will have a profit this year
I hope traffic increases
I hope the good employees will stay
I hope the new product sells
I hope this year will be better
I hope the economy gets better and we can survive
The Hope Plan does not work. Instead, you need a solid strategy that is well thought out and has a high probability of success. The best NFL football teams don’t just go out on Sunday and hope a series of plays work. Instead they study for hours and hours each week and develop a game plan that has a high probability for success. Then they go out and execute the plan!
So if you are serious this year and want to make progress, then here are some tips on how you can start this progress.
1. Quantification! You need to define what the KRA (Key Result Areas) are. Once you define the KRA, the next step is to TRACK the performance in those areas. It is a absolute must to know where you are actually at; and what you actually did last month, last quarter and last year. With a consistent accuracy you must know your averages and trends in the key result areas. In key results areas, you need your total for the year, your totals each month and your current average (current average = last 90 days). This will give you a good baseline to then build a solid strategy. But if you don’t know where you are and you don’t have any quantification, then it is impossible to build a plan to improve. So here are some examples of KRA’s you need to track:
• Income
• Retention both in customers and employees
• Closing Ratio
• Selling/Variable/Fixed Expenses
• Turnover
• Inventory (by category, obsolescence, turns)
• Gross Profit
Now that you have these numbers, we can move on to the second step: Goal Setting. You see, without knowing exactly what your numbers are in these key results areas, you have no idea how to even duplicate your production/results from the last 12 months, much less how to improve it. So tracking is the key first step.
2. Goal Setting: Set your goals for the year.
Setting goals is a process and there are right ways to set goals and there are wrong ways to set goals. We want to follow the system that is the right way. There are 4 elements to effective goal setting and you must have all four:
Measurable Action
Time Element
Track the performance
Written Down
Along with those 4 elements, there are two other words you must understand in goal setting: realistic and achievable. If you set “pie in the sky” goals, the system does not work and you will give up. Example: If you sold 2000 units last year, and your goal for this year is 5000, is that realistic? No. So don’t set goals that are too lofty and not achievable. Make sure your goals are real and you can accomplish them. That also does not mean they should be a push over either. Challenge yourself and follow those four elements.
How do you set goals? Take your numbers from the tracking in section one and use them as a starting point. Once you have a specific number in place, you then develop a plan of action on how you are going to achieve those desired results. The plan of action and execution is as important as the number. This is your map on how you get to the destination. The goals and action plans must be written on paper and very specific. Example: My goal is to sell 2000 units this year. To accomplish this goal by December 31, 2009, I am going to:
Set 3 appointments every working day
Meet 1 new person every working day
A closing ratio of 60%
Send thank you notes after every sale
Get 1 referral from every existing customer
After you have a number and action plan, the next step is to review and track. These are essential functions in an effective marketplace strategy. Now a question: how often should you review your goals daily? This is not a trick question. But stop and really think about this for a second. Don’t you agree that if you set a firm specific goal and you read it every single day and it becomes part of you? Don’t you agree that every single important thing in your life is written down (contracts, business plans, wills, estates)? And don’t you agree that if you read your goal every single day that you are passionate about that you will have a high probability to hit that goal? Of course you will hit the goal! Bottom line is the more often you read your goals, the more likely you are to reach your goals. It’s really that simple.
If you think you can or if you think you can not; either way you are correct. Attitude is the 2009 key to success in the marketplace. Look at how many companies and people are running around being nothing but negative. They have no chance of success. You can be different. You can set the pace. You can trail blaze. You can be a WOW Experience and totally separate yourself in the marketplace. Listen, 2009 should be viewed as a Huge Opportunity! It’s really hard to separate yourself in the marketplace when times are good. In good times, everyone is doing well and it’s hard to stand out. But in 2009, when everyone else is down and out, you can raise above and totally stand out. This year is a year of separation and you can dominate if you have the right attitude! Simply have a great CAN DO attitude and success will follow in 2009. You will be amazed at what you can accomplish this year with a CAN DO attitude.
Most businesses will miss the target and goals this year and the reason is minor errors. Don’t let this year slip by and not reach ultimate goals because you don’t know something or missing a coach. I can help so call us today to schedule your time!
Have a great year!
Chris Tapken
www.christapken.com
chris@christapken.com
