Every year is a journey for a business. You begin with a set of
objectives for the months ahead, probably encounter a few bumps along the way
and, hopefully, reach your destination with some success and a few lessons
learned.
The middle of the year is the perfect time to stop for a
breather. A midyear review can help you and your management team determine
which objectives are still “meetable” and which ones may need tweaking or
perhaps even elimination.
Naturally, this will involve looking at your financials. There
are various metrics that can tell you whether your cash flow is strong and debt
load manageable, and if your profitability goals are within reach. But don’t
stop there.
3 key areas
Here are three other key areas of your business to review at
midyear:
1. HR. Your
people are your most valuable asset. So, how is your employee turnover rate
trending compared with last year or previous years? High employee turnover
could be a sign of underlying problems, such as poor training, lax management
or low employee morale.
2. Sales and marketing. Are you
meeting your monthly goals for new sales, in terms of both sales volume and
number of new customers? Are you generating an adequate return on investment
(ROI) for your marketing dollars? If you can’t answer this last question,
enhance your tracking of existing marketing efforts so you can gauge marketing
ROI going forward.
3. Production. If you
manufacture products, what’s your unit reject rate so far this year? Or if
yours is a service business, how satisfied are your customers with the level of
service being provided? Again, you may need to tighten up your methods of
tracking product quality or measuring customer satisfaction to meet this year’s
strategic goals.
Necessary adjustments
Don’t wait until the end of the year to assess the progress of
your 2018 strategic plan. Conduct a midyear review and get the information you
need to make any adjustments necessary to help ensure success. Let us know how
we can help.
© 2018
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