This week at ProForecast we are dealing with corporate performance management and metrics associated with it and we would like to spread the word about business performance management. So, following our latest blog post about the basics of corporate performance management, this post will look at pushing your business forward through business strategy and performance management plans.

After the crucial early stages of your business, you should regularly review your progress in the light of your business plan and growth plans. Overall, monitoring your business is a great way to ensure maximum productivity and profit. Also, to identify how you can make the most of the market position and decide what is next step for you, you will indeed need to revisit and update your business plan with your new strategy in mind to make sure that you introduce the developments you’ve noted.

In this post, we will highlight how you should assess your business, where to start, how to establish your strengths and how to find areas for improvement.  

Factors

The growth strategy is essential for any business. However, before the appropriate strategy is put in place, you must spend the time to analyse your business processes, activities and why do you do them. To establish these key goals and create your further growth plan, you will need to find and analyse your internal and external KPI’s and their outcomes.

Core activities

A good starting point for your business performance management strategy is to review what you actually do – the so-called core activities of your business, whether it is products or services that you provide. The main question to consider is any potential improvements to your current offerings and any complementary products or services, how can you get more business out of it?

Business Efficiency

There are so many businesses that work without a growth plan, and it works for them. It allows them to be more flexible and reactive to the problems that arise. However, a major disadvantage of such a growth strategy is that it doesn’t account for anything that is over-the-hill. I.E. it can be quite hard to account for growth if it hasn’t been planned, responding to the changing complexity and volume of your organisation is not straightforward most of the time. It may require changing your supply chains, software’s and adapting your product completely.

The best option is to balance your ability to respond rapidly with a clear overall strategy. This will help you decide whether the actions you take are appropriate or not. At this stage, you should be considering any internal factors that are holding your business backs and how can you solve them.

Financial Efficiency

Businesses often fail because of poor financial management or a lack of planning. While many businesses forget about their business plans, implementing strong financial and management systems is vital for any business. At the end of the day, money makes the world go around!

Market Research

Once you established the position of your business, your efficiency and your scalability, it is important to look at your competitors. They will be developing their business all the time, just like you, so it is important to keep on top of your competitor activity.

You have probably done this in the beginning, and your business plan probably includes market research. This would have defined the market that you were operating in, and from that strategy, you would have been able to produce a marketing plan to help you meet your objectives.

For this stage, it is important to look at your competitor activity in the current market that you are operating, assess your customers and competitors and ensure that you are moving in a similar direction with them. However, don’t rule out moving to a new market if you see potential and growth available.

Set Goals

All companies have goals and by definition must have a strategy, whether articulated or not to arrive at those goals.

Of course, those goals must be realistic, but often small businesses through a combination of naivete and inexperience set goals which are impossible to achieve. Even large companies set goals which prove impossible due to unexpected circumstances, political or economic factors, or sometimes by market disruptors. So, make sure that the goals you are implementing to your corporate performance strategy are SMART.

REPEAT

So, you completed your business review, you probably know that it is time to implement all of these potential changes and opportunities to your new strategy and your growth plan.

It is, however, very important that you look at this review as a strategy and constantly revisit it. A simple planning cycle can greatly enhance your ability to make changes in your business routine if necessary. Good planning helps you anticipate problems and adapt to change more easily.

 

Subscribe to our Newsletter to learn more about financial planning, forecasting and risk assessment!