Tips & Tricks for Business Owners To build a Performance Driven Culture
Richa September 23, 2022
- Start by creating a business plan with clear numbers. This is also called the AoP – Annual Operating Plan. There should be detailed information on the revenue to be earned and every cost to be incurred. This plan will be created for the Organization and include all departments. This AOP will be used to create the strategy map of the Organization. Strategy map captures the “what and how”of business in a concise manner.
- Cascade the Business Plan. All numbers have to be achieved by the team – so the first step is to share and discuss the targets. Revenue, Profit, and Sales targets need to be drilled down. One can use the Balanced Score Card approach. There can be 4 perspectives – Financial, Customer Relationship, Internal Processes and Learning & Development. All departmental score cards must have their goals in these 4 sections.
- Get a buy, in- Simply, creating and sharing a score card does not drive results. One has to work with the teams who have to deliver results. They must own the targets. They must also understand the “how of achieving targets”. So they must know what inputs are required to achieve the targeted outputs. At a very basic level – the salesperson must know how many calls lead to one hot prospect. How many prospects need to be generated to convert one sale.
The team must be motivated to achieve the targets.
- Source Of measurement- It is very important to have a transparent and reliable source of measurement. A strong MIS system must generate all the reports. To begin with – this system can be created on Google sheets. So every employee should know what their achievement is, against the target in the score card. This becomes a dynamic tool for improving performance.
- Regular Review- what gets reviewed gets done. The entrepreneur must get a one-pager business report every morning which gives him/her an overview of the critical numbers – revenue, cost, digitization, manpower etc. All teams must be reviewed fortnightly against their target. In case there is a shortfall – it should immediately be addressed. A number of times you will realize that there is poor coordination between the teams.
- Use ONE Number to Create a performance driven culture. Set targets and reward achievement. When you reward an action – the message is very clear in the Organization. Visually reinforce the target of the Organization. This could be a revenue target, position target or Geography target. For e.g. “ We will be Number 1 in automotive parts by 2024”. This should be displayed at all places for the target to become a reality.