Quick check list for starting the new year
As you think about the new year and the uncertainty still remaining, there are some effective steps every company owner and CEO should be taking in January to help build your company valuation. Here is a brief check list for actions to consider:
- Finalize your financial budget and include ensuring key people on your team are aware of the financial goals and your expectations for their roles in supporting these targets.
- Finalize your non-financial key metrics you want your team focused on. These might include on time delivery/performance of your product/service, customer attrition, rework/scrap, health/safety, employee attrition, etc. Ensure key managers are updated on the targets and discuss how their role and focus can support achieving them.
- Review any incentive/bonus plans you have in place for key people or your broader team. Ensure the incentive plans are updated for the new year and linked to your desired financial and non-financial metrics. Meet with your team to ensure they understand how the incentive plan is to align with their role and your performance expectations.
- Establish your process in the new year for how you and your team will review your strategic plan to monitor progress. Given how dynamic the market is, you have to be very nimble in monitoring your strategic plan activity to be able to quickly identify any adjustment needs that may arise.
- Leverage your data, especially the last 6 months. Every company, no matter the size, can leverage their financial and customer purchasing data. You want to identify trends that have been emerging and given how dynamic the market is with COVID, the most telling trends from your data may be from more recent financial and customer data versus longer term historical data.
- Ensure your sales team is asking fresh questions of customers to help you stay current in terms of what’s happening outside your four walls. Too often our sales teams get stale in their customer dialog and stale means they aren’t learning anything new of strategic value. Your sales team is your front line for keeping you abreast of changing dynamics in the market, keep their dialog fresh. Consider doing the same with your supply chain people as many of your suppliers may also have helpful strategic insights.
- Assuming you put strong cash flow management steps in place in 2020, ensure you are maintaining this discipline and continuing to build upon it.
Start the new year with fresh thinking. Following this simple check list could enable you on your way to building the value, or worth, of your business.
