It’s difficult to believe that COVID-19 has been around for so long. Although the world has adjusted to a new normal, the effects continue to have an impact on business operations all over the world. While the pandemic created new challenges for businesses of all sizes, there are ways to incorporate lessons learned in 2020 into a strategic performance improvement business plan for 2023 and beyond. Keeping this in mind, this article will outline seven steps to begin planning for success this year and in the future.
Goals for Business in 2023
Consider your business plan to be a compass. It assists businesses in determining where they are and where they need to go. Putting your company vision on paper is one way to think about your business goals. It’s too common to set goals for business growth at the start of the year and then lose sight of them as the year progresses. Instead of setting annual goals, consider a goal-setting process that keeps you and your team on track.
Step 1: Examine Your Vision and Long-Term Goals
The first step in developing a strategic plan is to examine your company’s long-term vision and goals. By devoting time to analyzing your vision, you can take a step back and identify how your business needs to evolve to meet your objectives rather than focusing on short-term fixes.
It’s critical to remember where you’re going and why. Your vision should serve as your compass. When you set goals, they should all lead to the same destination.
It may be time to reconsider if you still need a clear vision or believe yours needs to be updated.
Step 2: Conduct a SWOT analysis
SWOT analysis is an acronym that stands for strengths, weaknesses, opportunities, and threats. Businesses use this strategy to identify blind spots that owners or employees may not notice daily. A SWOT analysis assists your company in slowing down and asking probing questions that reveal vital information about your company and where it wants to go. It is the most convenient way to assess your company internally and externally.
A SWOT analysis’s strengths and weaknesses are considered internal, while opportunities and threats are considered external. What does your company excel at, and where can you improve? Opportunities and threats are more important than ever in today’s marketplace as businesses evolve and innovate quickly. Rather than attempting to put out fires as your competitors take positive steps forward, a SWOT analysis enables you to act as a battle-ready firefighter. Strive to complete a thorough SWOT analysis at least once per quarter as a best practice to keep yourself accountable and on track with your goals.
Step 3: Establish Your Macro Objectives
What do you need to accomplish this year to realize your vision?
Determine 3-4 overarching goals for your company. Do you want to introduce a new product or service, for example? Do you want to hire 20 new employees? Write down three or four things you need to do to achieve your long-term vision.
Remember to choose SMART goals (Specific, Measurable, Achievable, Realistic, and Timely) that are measurable and easy to track when setting your goals. For example, a goal to “Increase sales by 10% in the next two months” is more accessible to measure than “increase revenue.” You might be interested in our revenue management consulting services to increase your profit.
Step 4: Determine the Key Performance Indicators (KPIs) You’ll Use to Monitor Success
Now that you’ve established your business objectives, it’s time to focus on tracking your progress and setting deadlines.
In addition to SMART goals, you should set specific dates and milestones by which you want to achieve your objectives. To stay on track, you should identify the Key Performance Indicators (KPIs) that will be used to track the success of your goals. Metrics are an excellent way to measure progress over time and understand what works in your business and why. There is no one-size-fits-all solution when it comes to KPIs and businesses. Each company’s goals are unique, and KPIs should be determined using the company’s business plan as a starting point.
Assume you want to make $100,000 in revenue in the next year. Conduct a quick “sniff test” to see if this is a realistic goal. Did you make less than $10,000 last year? Setting this new KPI may be impossible, and you may be setting yourself up for failure. Consider setting more attainable KPIs based on previous business performance that aligns with your personal goals and vision. Once you’ve established your KPIs, they’ll be a source of motivation to help you meet your larger business objectives.
Step 5: Determine Initiative Priorities
After you’ve identified 3-4 oversized rock items and determined how you intend to measure their success, brainstorm 5-6 strategic initiatives you can use to achieve those objectives. You must prioritize once you have identified 5-6 for each goal. Take into account your available resources and prioritize each initiative accordingly. Remember that the best teams will complete four initiatives per goal over a year; depending on the size of your team, you may be able to complete more, but four initiatives per goal is an excellent place to start.
Step 6: Create a Strategy for Implementing Each Initiative
Now that you’ve identified your goals and objectives and what you’re working towards (your vision), it’s time to develop a strategy and plan for how you’ll implement these initiatives. To ensure you stay on track, break it down into a weekly schedule that you can revisit throughout the year.
Step 7: Hold Yourself Accountable
The accountability component of your business plan must be implemented as soon as your goals are established. When you set a goal for yourself, what are the consequences if you don’t meet it? Although every business owner approaches goal setting differently, it’s always important to consider what happens if you still need to meet your agreed-upon KPI. It’s easy for business owners to get caught up in the day-to-day operations of their businesses, but this approach needs to hold them accountable for the big picture. As a best practice, business owners should spend at least 2-5 hours per week reflecting on what is working well and where they can improve.
Get the Plan, Partner, and Process You Need to Grow Your Business Confidently
Creating a business plan is the best way to break down your goals into digestible, actionable steps to keep your company on track. Apply this framework to your company and see how much easier it is to achieve your big audacious goals.
You don’t have to go alone if you need help figuring out where to begin. Schedule a 2-hour free 1:1 consultation with Life of Automation to dig into your business, identify bottlenecks, and develop a roadmap based on where you are and where you want to be. With this roadmap, you’ll have a concrete plan to follow to achieve your long-term objectives.