Every year the CEO hands down the revenue goals in the annual business plan. Everyone scrambles to make the figures, but nobody seems to take the time to think about what shaped those decisions.
First of all, you have to bear in mind that the main focus should not be deciding which strategy to adopt, but which criteria you use to select the right strategy. You start to develop those criteria, by figuring out what matters to your company and what success looks like.
Here are a few guidelines that will help you develop a set of criteria for your own business:
1. Establish what success looks like
Define as many elements as possible. What is your financial goal? What marketing strategies or tools will you need to promote your company? Do you have the right people working for you? Are the people you hired assigned to the right roles? Are their skills used properly and to the greatest advantage? Is market share more important, or maybe revenues, or client satisfaction?
If there are any changes to be made, they are welcomed before, rather than after implementing the strategy.
2. Decide what matters (in a general sense)
What is the current situation on your market? What are the new trends? Are there any preconceptions or long-held beliefs that might be holding your company back? What is the general feeling among your team members? Do they support your strategies? Were they effective in implementing the latest one?
It’s most important to keep your strategy aligned with the new status on the market, as well as the status in your own company. You have to develop a strategy that is both up to date and generally supported by your team.
3. Figure out what specifically matters to you
Now keep in mind that the main focus here is your company. And the most important asset you’ve got are the people working for you. Figure out what is important to them, and then what is important to the executive team. Do they have the same objectives? Are the interests of the people working for you aligned with the interests of your executive team?
4. Review the solid criteria
If you’ve gone through the first three steps, you’ll have about all the criteria you need to select the right strategy for your company. Here is a list of criteria you might consider:
- Company size
- Products portfolio
- Defense move
- Sales model
Elaborating the right success criteria helps you stay focused on the things that really matter for your company. You can only achieve success if you define what success is. How else will you know if you got there? Or how will you know if the place you are at is the right place for your company?