This week on the Service Contractor Radio Show, Chris Elmore is joined by fellow business coach and trainer, Dr. Kerry Webb. Kerry holds a Ph.D. in Business Management, and like Elmore, has seen and helped hundreds of trades businesses all over North America.
Their topic this week is for Owners and Managers. They cover the critical items you should do for your mid-year business review.
Compare your actual results to your budgeted results.
You should be doing this every month, but most definitely at mid-year. Doing this review allows you to make adjustments so you can hit your sales and profitability targets. Also, you can adjust your budget in the event that your original assumptions have changed. Your budget is a living, breathing plan. It’s not chiseled in stone.
Review KPIs versus expected results.
You should have a scoreboard for every division of your business. Everyone should know what performance level is expected of them. You should establish individual KPI targets for each member of your team. Just like with your budget, this is the time of year to adjust targets as needed.
Review your business for strategic loss.
This is the time of year to determine if there is anyone on your team you need to reassign or replace. No one likes talking about replacing a team member, but the reality is you will have to do it. Everyone should understand that they are being evaluated based on their KPI‘s. Changes should not be a surprise to anyone who’s performance is below expectations. Always be looking for good team members so that when this time comes you have someone to fill the spot. Also, this is a good time to review your customers to see which ones need to be given to a competitor. Upgrading your team and your customer base is just part of strategic loss.
It’s a good idea to review your business performance each month, but critical to do it at mid-year. This gives you the opportunity to adjust your budget, evaluate your team’s performance, and determine the strategic loss that may need to happen in your business.
As always, if you need help with this topic, please reach out to us.
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