New Year Reflections—You in the Marketplace

The calendar reminds me that it’s time to review my accomplishments for this year and set goals for the upcoming year.  Researchers have discovered that only 3% of Americans ever write down their personal goals.  And those that do rarely take the time to create S.M.A.R.T. goals (see Weekly Insight Vol. 1 Issue 26).  For example, research at the University of Washington concludes that most who flood their local gyms in January to make good on a New Year’s resolution have fallen by the wayside in 90 days.  Setting the goal is easy; delivering on what you say you plan to do is the real challenge.

Similar issues associated with goal setting and goal reaching extend to the corporate world as well.  In fact, I’m currently reviewing next year’s financial goals for one of my clients.  Here are a few of the general questions I plan to ask the owner regarding his company’s plans for next year. 

Ask WHY? before stating the WHAT

Before launching into your next fiscal year, ask yourself a series of “WHY” questions:

·        Why are we in business?

·        Why do we anticipate that our sales will go up, down, or stay the same?

·        Why are our competitors doing what they are doing?

·        Why are our customers…our customers?

·        Why are others not our customers?

·        Why are our employees staying/not staying with our company?

·        Why was this year more/less difficult than last year?

·        Why do we think next year will be better/worse?

Answering these (and many more) “WHY” questions will not only help you determine your motivation for being in business, but also confirm the assumptions that you are carrying forward into the next year.

Ask HOW? for each WHAT

For each WHAT that is listed ask, “How will we do this?”  For example, if sales in a certain division are projected to increase 25% this year, make sure you understand how this is going to take place.  What are the assumptions behind each “WHAT”?

And, by the way, test each assumption.  Why is this assumption valid?  What are the facts that support each assumption?  Remember, “just saying it doesn’t make it so.” 

Show Me the Accountability

Most of us have been involved in lengthy planning processes that produce lengthy budgets that do not produce the results that we intended.  To avoid this from happening to you next year, build two things into your control system:

·        Accountability

·        Contingency Plans with Trigger Points

For example, if you have a certain profit target for the next year, and your business is not seasonal in nature, you should expect 25% of your target to be reached after the 1^st quarter, etc.  If you don’t reach your 1^st quarter’s profit target, what do you plan to do that will raise the probability of your reaching your year-end profit target? (Revisit the WHY and HOW questions at this point.) 

You should have in place certain actions that will occur at specified trigger points.  For example, these actions could involve cost reductions if certain revenue targets are not reached by certain dates.  By thinking through these contingency actions well in advance, your plan becomes more proactive rather than merely reactive to changing circumstances. 

Ensure that God is Working For You, Not Against You

I plan to develop this theme over the next year.  I’m sure many of my musings on this subject will find their way into these Weekly Insights.  But as a beginning, allow me to quote I Peter 5:5b:

“God opposes the proud, but gives grace to the humble.”

As believers who serve God in the marketplace, we must allow for the mystery of God in our businesses.  There may be times when what we decide to do is counter intuitive to current business thinking (think of Chick-Fil-A being closed on Sundays).  We, as business leaders, must be willing to admit when we are wrong and apologize for our words and/or our actions.  Although this humble approach contradicts today’s image of the charismatic, machismo CEO, it is only through humility that God can truly lift us up and allow us to be entrusted with “true riches” (Luke 16:11).  And let’s not forget the power of a clear conscience. 

In closing, remember the “WHY” before the “WHAT.”  Ask “HOW” before assuming all will proceed as planned.  Develop bulletproof accountability systems and contingency plans.  And make sure God is working with you along the way.  Now you’re ready to plan for the New Year. 

Keith 

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