As there is no guarantee that every small business will succeed, sound strategic planning will assure that you're in front of the game.
Furthermore, there are several proven practices that every CEO can implement quickly, to cultivate the company. These practices are tailored for improve productivity while increasing employee engagement, ultimately making the workplace a happier place to be.
Have a Vision for your Business
Above all, have you got a vision for you business? Should you, do your employees know about it and determine what it means?
A vision or strategic plan is different to your small business plan. This is an overall plan (or strategy) that flows with the business, with initiatives that all employee needs to be embracing.
Often those in charge of a company have an image for the business; they may even have a well-calculated strategic plan. Unfortunately, generally, CEOs don't articulate their vision inside the business, and so their workers aren't in tune by using it. Just how can they be?
Here's 6 tips that all CEO are capable of doing to align staff towards the Corporate Vision and Strategic Plan.
1. Set a Good Example
Those days are gone whenever a CEO simply tells his / her staff to "do when i say". Instead, those invoved with charge (who're essentially those invoved with executive positions) should lead by example. By setting behaviour values and taking care of your workers and customers with respect, you will soon have those around you learning these behaviours and acting the "right" way.
2. Walk a floor
Get free from your working environment and speak to those who work for you. Sadly this is a thing that relatively few CEOs do, although the greatest amongst them do. And those that do bother realize that it provides a hugely positive effect, having an influence on productivity and general morale, encouraging employees to consider positive initiatives. Furthermore, it's one of the simplest things to do.
We all know the CEO is a busy person, but merely five or ten minutes per day "walking the floor" can make a realm of difference. And since people know you're busy, you'll gain respect too.
3. Hire Individuals who have Passion
The Australasian Turnaround Professional of the Year 2011, Michael Fingland, says, so rightly: "You can teach skills - however, you can't teach passion". This is the reason it is best to hire individuals with passion. Should they have the right skills, this can be a bonus, but you can invariably fine-tune their skills.
When you hire new employees, be very deliberate within your questions. Learn how they think. Discover their culture and price systems. It might not be obvious (actually it probably defintely won't be), so you're going to must draw this info out.
4. Do not be a Control Freak
There are particular things a CEO can control, and some things he or she cannot control. But management teams generally speaking spend too much time stressing about control. Most over-analyse as well. For example, one of the primary obstacles is trying to guess where the economy goes. It's really a useful exercise, but generally management just loses lots of valuable time and winds up with a team that under-performs.
The key is to realign your values and also to focus your time and energy on what will impact on the company positively. All things considered when the economy is at trouble, there's no point in sitting back looking forward to things to change. There are additional challenges in a downturn in the economy, but by focusing on what you can control, you'll find you receive more grip on things, and this will result in positive energy all round.
5. Align Your KPIs and Incentives
All too frequently businesses don't align their incentives for their vision or strategic objectives which have been set up by the management team. Even if you have circulated your strategic plan effectively, you will still need to have key performance indicators (KPIs) set up which are aligned directly to the key divisions inside business.
As an example, many businesses only set sales targets, and thus sales teams sell without due regard to profit and is tempted to discount heavily to reach sales quotas.
Altering your KPIs to match your entire corporate goals can help your teams are more closely aligned for the outcomes you would like.
6. Get hold of a Mentor
It's true that a lot of CEOs don't have people they can speak to and acquire advice from. But if you have a great mentor, you should have a completely independent sounding board, and someone you can trust and count on to give you honest and objective feedback and advice.
The concept of mentors for management teams and CEOs is increasing in popularity fast around australia. It has been an expanding trend in america and Europe for the past decade, and stats show that at the moment, a minimum of 60% of Australian CEOs are reaching out to mentors.