Since most of my clients operate on a calendar year, many are now at the stage of analyzing 2012 projected year end results and starting the planning process for 2013. I started this process with one of my clients last week. We gathered his staff to discuss an agenda consisting of four main topics – What do we do well? How can we do more of that? What do we do poorly? How can we do that differently or do less of it?
We looked at data from our YTD actuals and projections for year end 2012 – analyzed orders by size, by product, by market segment and by sales representative. We analyzed operations on the same basis. Armed with an understanding of the historical trends and performance metrics of the company, we performed a standard SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis. We filled at least one page of a flip chart with thoughts and issues under each topic. We then drafted a summary document and asked each team memeber to take that information and return in two weeks to present their personal goals and objectives. These will be discussed in one-on-one sessions with me to determine how each planned activity will add value to the company next year and how it will be measured and rewarded. Following the one-on-ones, I will roll up the individual plans into the consolidated plan for the company and present to the owners. The result of these measures will be to hit the ground running when the clock starts on the new year – each employee clearly understanding the expectations, measurements and rewards. This is the best way I know to start your year from a position of strength.
If you don’t have the process to adequately plan for success, perhaps you should be working with a Business Consultant. We are here to help!
More soon, Randy
Your Partner in $ucce$$
Randy Elo is President and Founder of Elo Business Operations Consulting Inc.
In answer to many inquiries, my website was built by my good friends at Angulus Marketing (www.angulusmarketing.com) The blog was also built by them on a WordPress platform. For the best value in internet Marketing, contact Guy Gagnon (guy@angulusmarketing.com) and get his expert assistance in web marketing from every angle!
More soon, Randy
Your partner in $ucce$$
Randy Elo is founder and president of Elo Business Operations Consulting Inc.
I met with a client who sells insurance on Monday. We are working on life insurance sales, so we had agreed that she would count the number of times that she said life insurance each day. When I asked for the numbers, she sheepishly admitted that she had failed to track this metric. I asked how many life insurance appointments she had scheduled this week and she said none.
Time for a little tough love! I pointed to her phone and said “pull out your prospect list and let’s make some phone calls” She got flustered and asked “what, with you watching?” and I nodded. She took a deep breath and then dialed the first number. Due to my presence, she stumbled a little in leaving a message. I left for a moment and told her to relax and then we would try it again. Four more calls, she left three voice mails with increasing proficiency each time.
Today I called her for an update. Well, of the three messages, one had already come in for an appointment and bought a policy, two more are scheduled for appointments … and when I asked how many times she said life insurance yesterday, with great pride she answered “I said it NINE times!”
Sometimes a little push is all it takes to get on the right track. This is what your business coach can do for you!
More soon, Randy
Your partner in $ucce$$
Randy Elo is founder and president of Elo Business Operations Consulting Inc.
The planning process is the second most important aspect of Business Operations, following closely on the heels of execution. In The Seven Habits of Highly Effective People, Steven Covey lists habit #2 as “Start with the end in mind”. The end is the achievement of the plan.
Once you have decided where you want to go, break it down into manageable increments. A simple example. Say you have a sales plan for your company of $1 million for the year. By itself this seems daunting, but by breaking it into milestones it becomes much more manageable. The plan means you need to sell $83,333 per month, $19,231 per week, or $4,184 per day. NOW build an activity plan for your sales team that will result in achievement of these goals. If your closing ratio is 50% in the above example, your sales team needs to quote $8,368 per day.
Start measuring your progress the first day of the year, modify the plan and activities as indicated to correct for deviation and you are well on your way to the promised land … the place you DECIDED you wanted your business to go.
More soon, Randy
Randy Elo is founder and president of Elo Business Operations Consulting Inc.
Thanks to all of our loyal readers for your inquiries. I was seriously injured in an automobile accident a few months ago and am only now getting back into the swing of things. Through the combined efforts of the engineers at Ford Motor Company, the Volunteer Firefighters of Tiny Township, the Simcoe Country Paramedic Service, the southern Georgian Bay detachment of the OPP, Georgian Bay General Hospital, and the combined work of Dr. Rob Stubbins and Dr. Sue Lyons and their respectice staff, I am alive and now recovering.
Watch this space in the coming weeks and months as we begin once again to discuss key elements of business, management and $ucce$$. Business coaches can help you enhance your effectiveness and profitability.
More soon, Randy
Your partner in $ucce$$
Randy Elo is founder and president of Elo Business Operations Consulting Inc.
A man approached JP Morgan, held up an envelope, and said, “Sir, in my hand I hold a guaranteed formula for success which I will glady sell you for $25,000.” “Sir,” replied JP Morgan, “I do not know what is in the envelope, however if you show me, and I like it, I give you my word as a gentleman that I will pay you what you ask.” The man agreed to the terms, and handed over the envelope. JP Morgan opened it and extracted the single sheet of paper. He gave it one look, a mere glance, then handed it back to the gent. And paid him the agreed-upon $25,000.
The Paper:
1) Every morning make a list of all the things that need to be done that day.
2) Do them.
More soon, Randy
Your Partner in $ucce$$
Randy Elo is founder and president of Elo Business Operations Consulting Inc.
… to be PLANNING! By now you should be able to estimate your 2011 results accurately. These will form the basis for next year’s goal setting and planning. If you have not yet put pen to paper on your 2012 plan, you are not positioned to hit the ground running – in 22 days!
What went well in 2011? Where did your new business come from? Where are you going to find more of this type of business and customer? What did not work? Are you going to modify or eliminate these activities? If eliminated, what activities will replace them? Why will these be more productive?
Right now I’m going through this process with most of my business consulting clients. We are examing our results, comparing them to our goals, setting new goals for next year, and critically evaluating business processes to find improvement and efficiency. Employee performance is being reviewed so that training and performance goals can be set. Only through the continuous examination, refinement and adjustment of processes can we meet the ever-changing demands of the marketplace.
If you don’t have the financial data and history to make these evaluations, you need to talk to your accountant and/or bookkeeper; if you don’t know how to use these results to reset your goals and plans for the next year, you need to get with your business consultant!
More soon, Randy
Your Partner in $ucce$$
Randy Elo is the founder and president of Elo Business Operations Consulting Inc.
Many clients confuse goals and plans. Goals are your targets. Where do you want to go? What will be the evidence that you have arrived there? Goals can be measured in sales dollars, profit dollars, units shipped, clients visited – they are empirical, measureable, and time sensitive.
Plans are made in order to achieve goals. Goals are carved in stone; plans are fluid, changing with the conditions, but always focused on driving towards the goal. Say you have a goal of selling $1,000,000 this year. The goal is measureable (in dollars) and time sensitive (to be completed at year end). Now develop a plan to support the activities which will accomplish the goal. What is your average sale? If it is $1,000 per unit, you need to sell 1,000 units. How many sales days are there until year end? How many units per day do you have to sell to reach 1,000? Who are your prospects? How many are there? What percentage do you expect to close? How close does that get you to your goal? Where are you going to go to get the balance of the orders? When? Why are they good prospects?
It is in the development of the plan that the metrics which I preach become essential. If you don’t know what your average sale is, who your prospects are, what your closing ratio is, and other such key metrics, you need to work with your business consultant to start the measurement process. Only by knowing the key metrics surrounding your business can you build a sales plan to achieve your goals.
More soon, Randy
Your Partner in $ucce$$
Randy Elo is founder and president of Elo Business Operations Consulting Inc.
“Tell me more about that”. You have just made a sales presentation and have asked for the order. The client has responded “it’s too expensive”. Did you start talking about your cost in relation to industry standards, in comparison to your competitor, or start searching for differences between your quotes? If so, you lost the opportunity to have the customer overcome the objection himself.
Is it too expensive relative to the budget for the project, or in comparison to what has been offered by your competitor? Does the client understand everything that is included in your proposal, or does he assume that all companies like yours are generic and the only differentiator is price.
Tell me more about that. This question can be asked (in variations) in response to almost any objection a client gives you. ”I used your company once before and was not impressed” … tell me more about that. “It doesn’t come in blue” … tell me why it’s important that it come in blue? “I hate your company’s service” … tell me more about that. Let the customer explain the objection fully and he may very well overcome it himself. Work with your business coach to develop your objection handling skills.
More soon, Randy
Your partner in $ucce$$
Randy Elo is the founder and president of Elo Business Operations Consulting Inc.
Does your business run in accordance with a plan? Does the plan lay out a measured series of steps and events designed to get to your final goal? If not you need to take a step back with your Business Consultant and take a holistic look at your business.
With my clients, I usually take a “GAP Analysis” approach. This involves developing an understanding of the client from a professional and personal perspective to understand three key items: 1) Where are you now? 2) Where do you want to be? 3) What does the GAP between 1) and 2) look like, and what steps are necessary to move the business down this path – to close the GAP?
Where is the GAP in your business? If you have not identified it, it is time you worked with a Business Coach to map our your course to success.
More soon, Randy
Your Partner in $ucce$$
Randy Elo is founder and president of Elo Business Operations Consulting Inc.