During Ups and Downs, Focus on the Plan, not the Goal
Photo by Volodymyr Hryshchenko on Unsplash
Hey Founder,
The end of the each quarter or year draws near, and I’ll bet the chances are good you are feeling one of three ways: elated at having surpassed your financial goals for the quarter or year; neutral at having met your financial goals during the same period; or bummed out at missing them.
Maybe you looked back at last quarter’s/year’s final numbers and thought, “Hey, we grew 10 percent last year, so maybe we shoot for 12 percent this year?” Or, maybe you were flat last year and had low expectations for this year, so you’re feeling kind of, meh.
I want to suggest to you that in any case you are focused on the wrong thing in your fast-growing company. You really don’t need to feel that missing a three-month goal one quarter means you’re “behind the eight-ball” for the remainder of the year. Have you considered that you may have set too ambitious a goal or were unaware that you’re not really set up to achieve that financial goal?
If you’re a founder, it feels rotten to miss your financial targets, especially if you have a profit-sharing or other kind of plan in your company.
But the answer may be found not when you focus on the outcomes or outputs of your plan, but rather at the plan itself. The plan’s the thing that gets you to your desired outcome, not shifting your expected outcome. Proper planning looks forward, backward and in the present.
So, take a deep breath and follow these five steps.
First, make time for your quarterly retreats. That’s a retreat every three months in which you take a day or two to step back from your business and work on your business. Use the time to give yourself some key inputs. First is “know yourself,” i.e. where are you financially? Do you have cash to invest? Do you have holes in your team? How’s the culture doing?
Second, re-examine your customer. Are they buying in a new place or in a new way? Have they given you feedback that could suggest ways you might do something new or different?
Third, ask yourself about your market? Are there new trends or competitors on the scene that have changed the game for you? Is someone undercutting your product; is there a trend that you might seize upon and integrate into your product or service?
Systematize your data and bring it to your retreat. (For example, I used to designate a “customer Czar” in sales for this purpose.)
Revisit your “why” and determine what’s most important right now as a priority. The sales or revenue goals should come at the end of proper planning, not the beginning.
The big questions revolve around your objectives and key results. Focus on these, and your financial goals will fall into place. And if they don’t, train your sights on learning where you’re missing your marks. When you focus on learning, you’ll find yourself being less emotionally swayed whether you meet, exceed, or miss your numbers. This will lead to better decision making across the board.
So don’t let the financial-goal tail wag the strategic-plan dog. And let the team at ScalePassion know if this is something you’d like to work on with us. We’re here for you.
Sincerely,
Rob Craven, ScalePassion
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