January 25, 2016
Owning and running a small business is all about molding it so that it serves you and your Dream Lifestyle.
It’s this dream lifestyle that we can enjoy when we design and run our business the right way. As you become familiar with the FOUND MONEY concepts, you’ll discover that everything I’ll help you achieve rolls up to support your dream lifestyle.
I want you to get excited about your business again. I want you to see for yourself that the financial result your business creates is the direct result of specific patterns and processes. And you can control these…
January 25, 2016
You MUST start by setting True Targets where each team member knows exactly what each target means.
True Targets are concrete, meaningful, and relevant to every single team member – irrespective of their role in your business.
Effectively using True Targets also involves you tracking these numbers publicly and sharing them with your team members.
Good targets should be used as the foundation for you to set your budgets, your financial forecasts, marketing plans, communication plans, expansion plans and so on.
<b>This is a departure from what most business owners are used to doing. </b>
To have the best success in driving your strategic financial results you MUST hold off doing any budgets or forecasts <b>until you have identified your desired strategic results and determined the granular path</b> to get there.
Then your budgets and forecasts must be created to align with your strategic targets, timelines, and goals.
Finally, you MUST make a single person accountable for achieving each True Target.
The person accountable is more than simply a “champion”, “cheerleader” or someone that will merely report on progress made.
The person accountable for each True Target is the ONE person who is responsible for achieving that target (or intermediate target) within the timeframe that has been set. They will involve other team members in your company and have many people helping – but they are ONE accountable for it.
Failure to do this results in excuses and weak effort instead of progress – not cool!
Strategic targets almost always involved a longer-term planning and execution horizon (usually 3 – 5 years). While you will start work immediately on executing tactics to start driving toward your strategic True Targets, their ultimate accomplishment will most likely take a few years.
To provide a bridge between where your business is at any given moment and your strategic and business goals it therefore becomes critical that you break your long-term strategic True Targets into a series of phased targets that will march you and your team straight to your desired end result.
Blending multi-year goals (like doubling gross profit in the example shown earlier) and near-term targets that will provide motivation, feedback, relevance, and urgency is what provides the “secret sauce” that makes creating and using True Goals such a powerful approach in your business.
Failing to do this creates high levels of frustration, confusion, and even resentment in your team. These emotions are triggered by the “too-large” gap between the present and the strategic True Targets without a clear view of a stair-step progression to get there.
The longer-term your targets are, the less certainty you can have about the ability of your business and your team to achieve them. But by “rolling back” your longer-term targets into shorter-term targets (i.e. 1 year out, and then the next 90 days) you can have a fairly high degree of certainty about “stepping” your way toward your longer-term (and bigger target) confidently.
It is emotionally and psychologically destructive to set grand, long-term targets without concrete short-term goals. Failure to set short-term goals that are in context essentially create a “pie-in-the-sky” feel to targets that leave your team feeling unmotivated, helpless, and demoralized.
Experience has shown that the most effective approach is to phase your overall strategic True Targets into, as a minimum, quarterly True Targets – although monthly has proven even more effective and powerful.
The best phasing interval for your business depends on the characteristics of your business, your reporting structure, your market, and your desired speed of execution.