Rule #2 was a favorite saying of Dr. Stuart Rich, a business professor of mine at the University of Oregon. I chuckled when I first heard it, but it has stuck with me and been proven true time and time again in my experience.
“Without a direction, companies never achieve their full potential.”
As I mentioned in Rule #1 (We Don’t Know What We Don’t Know), many owners operate by ‘gut feel’. Without the help of a destination and a roadmap, they make decisions regarding business opportunities that seem ‘right’ at the time, often without fully considering the impact on the existing company businesses and infrastructure (people, systems and processes). They take the “any road” approach.
The result: a company with businesses that don’t complement each other, systems that are not integrated and inefficient staff that are pulled in too many different directions.
Without a direction, companies often attain lackluster results and never achieve their full potential.
Don’t be an “any road” owner. Develop, document and implement strategic, operational and financial plans with S.M.A.R.T. (Specific, Measurable, Attainable, Realistic and Timely) goals. These documents will define where you’re going and how you’re going to get there. You can then evaluate opportunities from the plans’ perspective; does the opportunity help or hinder you reaching your destination? Establish annual budgets and track your actual performance against these budgets (where are we on the road to our destination/meeting our goals?).
B2B CFO® partners can help you define where you’re going, how you’re going to get there and measure where you are on your road. Everything we do is to improve owners’ lives and help them achieve their goals.