The natural thought process for small business owners at this time of year is often about goals, i.e.: “How can we do better next year?”
Before you can answer that, you need to decide what “do better” means. What’s your process for thinking that through? If you decide it’s about increasing a high level focus item like profit (rather important), you’re going to have to break it down so you can focus on the actions that produce the increase you’re looking for.
Departmental goals matter too
Once you’ve settled on an area to improve, don’t limit improvement ideas solely to your focus. If you have a staff, you have to get them involved. If you’re big enough to have multiple departments, you have to get them involved. Get them together and take them through the process you went through. For each department or area of the company, what data should they review? For each department or area of the company, what else needs review and discussion? What do they think they can improve upon this year that will have the most significant impact on their area’s quality and speed? Each department needs to understand how achieving their goals will contribute to other departmental goals, and vice-versa. Finally, all departments or areas of the company need to understand how their area’s goals contribute directly to company-wide goals.
Communicate company-wide goals
Most business owners are pretty good at breaking down the achievements required to reach their goals, but a common misstep is to overlook the communication required to make sure that the owner’s company-wide goals have “Why does this matter to me?” context at all levels of the company, for every employee.
This is a critical step for several reasons, most of which are connected to the need to provide employees with context to the company’s goal(s). When discussing the context of the goals with your team, answer these questions from the employee’s perspective: Why should I care? How can a brand-new employee contribute to such a high-level goal? How can an employee who feels their work is “menial” possibly believe their effort is critical enough that it rolls up into the company’s goals? What do I need to hear about my work to make this company goal important? (If they don’t know these things, they won’t likely be bought in to company goals.) My low-level work seems unimportant, so why does this matter to anyone? I watch the clock all day, how could my work be of importance to the company?
Each person, regardless of what they do, needs to understand how their work contributes to the company’s goal(s). They also need to understand what their department’s goals are. They need to be reminded that the most “menial”, seemingly “low level” task is important because that work is often where the company has significant contact with the customer. If they don’t truly understand the importance of what they do – their leader needs to step in and help.
Obvious, but often overlooked
You might be thinking this is all so obvious, but in small, closely-held companies, these things are not commonly communicated, or are not explained to a level that makes them resonant with the staff. If your company goals don’t resonate with the staff, they really aren’t company goals at all. The same goes for departmental goals, which can produce silo’d behavior that leaves people with the impression that the performance of one group or even one person is not all that meaningful to the rest of the company, when the truth is that all of these pieces working in sync are critical to making the entire company’s goals.
Things to consider
What are the three most valuable pieces of information you learned about your clients this year? Of those three, which demand that you leverage them with into the new year? Is any one of them such a competitive advantage?
What is an area of strength in each department that can be leveraged for the entire company? Is this a strength limited to that department, or can that department teach the rest of the company how to gain from it?
When you sit down to look at these things and discuss them, be sure that you’re thinking about and discussing the data, rather than going on gut feel. It’s way too tempting to do this by the seat of the pants, but don’t do it.