Business Framework

Improving your company’s process and performance can seem like a daunting task. Whether you aim to transform a loss-making venture into a profitable enterprise or expand the scale and speed of operations, having a structured approach is essential. This article outlines a detailed 7-step framework to streamline your business processes and achieve sustained performance improvement.

1. Write Down Your Goal Statement

Begin by converting your vision into a clear, actionable goal statement. Effective goal statements are:

• Short-term oriented: Focus on a timeline of 1-6 months to maintain relevance and feasibility.
• Specific and actionable: Clearly state what you aim to accomplish and by when. This can apply to your company, a department, or even individual employees.

Examples:

• Company goal: "Achieve a 10% increase in monthly revenue by June."
• Department goal: "Complete the automation of manual processes by April."
• Employee goal: "Close 15 new accounts by the end of March."

Many businesses fail to act because they overthink or hesitate to make decisions. Writing goals provides clarity and momentum.

Pro Tip: Don’t limit yourself—your potential is limitless.

2. Identify Potential Difficulties

Once your goals are defined, consider the obstacles that could prevent success. This step is crucial for realistic planning and proactive problem-solving.

Example:

If your goal is to increase sales, potential difficulties might include:

• Limited team training.
• Ineffective sales scripts.
• Lack of marketing support.

3. Identify Potential Possibilities

For every difficulty identified, brainstorm corresponding solutions or opportunities. These possibilities provide a roadmap to overcoming obstacles.

Example:

For the difficulties mentioned above:

• Difficulty: Limited team training. Possibility: Schedule daily training sessions to enhance skills.
• Difficulty: Ineffective sales scripts. Possibility: Develop scripts tailored to customer pain points.
• Difficulty: Lack of marketing support. Possibility: Invest in digital advertising targeting relevant demographics.

4. Establish Success Rituals

Transform possibilities into daily or weekly rituals to ensure consistent progress. These rituals act as guiding principles for you and your team, minimising the risk of deviation due to external distractions.

Example:

• Possibility: Team training every morning. Ritual: Conduct training sessions from 8 am to 9 am daily.
• Possibility: Enhanced customer follow-up. Ritual: Implement a rule that each salesperson must make at least 10 follow-up calls daily.

When these rituals are clearly communicated and enforced, they foster discipline and alignment across the team.

5. Measure Success

Quantify the effectiveness of your rituals and measure outcomes to assess progress. Success metrics can include both effort (input) and results (output).

Example:

• Effort Score:
  • Expected: Each salesperson to make 50 calls daily.
  • Actual: 45 calls.
  • Achievement: 90%.
• Result Score:
  • Expected: $20,000 in weekly revenue.
  • Actual: $18,000.
  • Achievement: 90%.

This step helps identify gaps and opportunities for improvement.

6. Conduct Regular Reviews

Review both effort and result scores periodically, ideally weekly. Use these reviews to identify achievements, shortfalls, and areas requiring intervention.

Example:

A weekly review might reveal:

Benefits:

• Identify top performers for rewards and recognition.
• Pinpoint underperformers and provide targeted support.
• Gain insights into product or service performance across different regions.

7. Implement an Improvement Cycle

Leverage the PDCA (Plan, Do, Check, Act) model to continuously refine your processes:

Weekly Focus:

• What went well: Highlight successes to replicate.
• What went wrong: Address challenges and inefficiencies.
• What could be improved: Implement new strategies or refine existing ones.

Example:

If a salesperson struggles to convert leads despite high effort scores:

1. Plan: Schedule training to improve conversion skills.
2. Do: Conduct daily role-playing exercises.
3. Check: Assess improvement via weekly performance metrics.
4. Act: Adjust training content or frequency based on results.

Additional Tips for Small Businesses

• Prioritise revenue-generating activities before cost-cutting measures.
• Diversify income streams to increase financial stability.
• Engage your team in the improvement process to foster a sense of ownership.

Conclusion

The 7-step business performance framework is a robust tool for turning around underperforming businesses and driving consistent growth. By setting clear goals, identifying challenges, and continuously improving, businesses can unlock new levels of success. Implement this framework, track progress diligently, and make data-driven decisions to ensure long-term sustainability and profitability.