If you want to create lasting business success through sustained financial high performance, then here is a high-level road map. If you do a good job with the 3 leading indicators of the right plan, the right people, and the right processes for continuous innovation, then you will do well with the lagging indicator of profit.
The Right Plan
- Create a strategic plan that differentiates your business from your competition and that builds on your unique vision.
- Keep your plan simple and executable. Avoid the SPOTS syndrome: Strategic Plan On Top Shelf. This occurs when strategic plans are overly complex and wordy and are not updated regularly during the year.
- Communicate your strategic plans well and often, and make sure everyone in your business knows their role in achieving the strategy.
The Right People
- Recruit 90% “A” Players (top 10% in their roles) for your business. In the business world, if a team of “A” Players competes against a team of “B” Players, the result is pretty predictable.
- Create a Profile For Success for every new role you add to your business, and use background checks, testing, and behavioral interviews to get the right “A” Player in the role.
- Rehabilitate or remove “dead wood” teammates. You’re not doing anyone a favor by keeping them in a job in which they’re failing, and you’re penalizing yourself and everyone else on your team by dragging down the financial performance of your business.
The Right Processes for Continuous Innovation
- Create an ongoing strategic planning team and schedule regular updates. You will wind up in trouble if the world is changing more rapidly than your business.
- Continuously improve your leaders’ capabilities. Business performance is driven by leadership performance.
- Continuously improve your business practices based on customer needs. If you’re not meeting these needs, then someone else will.
The Right Profit
- If you do the first three well, then the profit will follow like the sun after the rain…