“Without strategy, execution is aimless. Without execution, strategy is useless.” –Morris Chang, Founder, Taiwan Semiconductor Manufacturing
We just experienced another great spring season. The cold has given way to more moderate, if not hot temperatures. Flowers are blooming. For many that signals the annual ritual of “spring cleaning.” And for many of us, at some point of our calendar years, that not only applies to our homes, but to our businesses. At the workplace, at some point each year most businesses look to fine-tune their strategic direction, tactics, processes, and policies, in a review like annual spring cleaning.
Achieving great annual business planning stresses being organized for the endeavor to be successful. Having sound data, with useful analytics for guidance, is an absolute. Fine tuning processes to fit plans is always good. Making certain we have the best, and right people to execute plans is a no-brainer. Leadership supplying great vision is of course mandatory.
Working with stakeholders to understand their viewpoint of unique business needs is necessary. Identifying, discussing, and solving issues is not only “spring cleaning,” but necessary throughout the year. Reflecting on “what we are good at” is part of the formula. Documentation and prioritization of customer needs provides direction. An honest discussion of opportunities for improvement should be in the mix. Who is doing better at what we do is a great question. The so-called “SWOT” analysis is the result – Strengths, Weaknesses, Opportunities, and Threats.
These components of great business planning, and great management leading to great execution, will gain traction for our businesses every year.
Ken DeWitt, Expert EOS Implementer and Business Coach, helps companies like Pace get and maintain a grip on its business through daily, weekly, quarterly, and annually practicing rigorous Entrepreneurial Operating System principles.
Ken advises (and demands) that his clients work to grow their businesses responsibly and profitably through paying attention to EOS’ six components:
- People
- Vision
- Data
- Issues
- Process
- Traction
Each client’s year is kicked off with their all-important Annual Planning. Ken says that “the Annual Retreat sets the tone for the entire year. My clients do these anytime between late August and early February for the coming year. I always recommend making a mini-retreat out of it – go to a place where all can relax – a hunting camp, a golf resort, or even a Lake House. Some of the most important conversations happen over dinner or around the fireplace. Work hard during the typical two days, to allow time to kick back and get to know one another during the evenings. In our planning agenda, it is two full days – the first focused on prior year review, team health exercises, and strategic planning. The second is a bit more tactical, setting specific annual goals, and then the next quarter’s priorities, and then solving any key issues that remain.”
Great Annual Planning is strengthened during the year with Quarterly Planning sessions.
“We’ve found that building a ’90 Day World’ helps the leaders focus with heads down on the immediate tasks,” said Ken.” They’ve got their hands full just keeping on top of their jobs, plus the occasional special project (we call them ‘Rocks’). So, taking a day for an off-site allows a review of the quarter’s progress, learning new tools and skills, checking progress on Annual Goals, and tweaking our efforts to stay on track to achieve them.”
High performing companies have great weekly departmental meetings where progress toward Annual Goals, and Quarterly Goals (Rocks) are monitored, and issues are identified, discussed, and solved. Between the Quarterlies and Annuals, teams are trained to stay on track with effective weekly meetings.
“We call them ‘Level 10’ meetings,” Ken said. “That’s because we score them at the end of each meeting, so we can give our facilitators immediate feedback on how to keep the meetings crisp and effective. We follow a strict Agenda and Meeting Rules so that we check in; review our key metrics; our Rocks (key projects); our customer and employee and vendor headlines; and the To-Do’s we promised each other we’d complete at last week’s meeting.”
To gain traction in any company, accountability for making goals is critical. “The accountability from such discipline keeps everything moving. But the key part of the Level 10 meeting is the 60 minutes we spend solving Issues, problems, barriers or how to take advantage of new opportunities,” Ken continued. “Twelve or thirteen of these in the weeks between Quarterlies helps us execute well, stay connected, and keeps everyone focused on what’s most important.”
It’s always a good practice to put goals in writing. Often, teams and organizations will have goals that are perhaps in the minds of management. These goals should be in writing and available to everyone in the company:
- Write them down
- Make them big and visible throughout the company
- Remain grounded in those goals throughout the year
- Revise goals and adjust as needed
Through great weekly meetings, teams can have a big effect in attaining company goals and can be encouraged and motivated to be involved and share their knowledge of what is happening in the business. Management can support their teams via a shared vision and helping them to understand the “why” behind what is being done.
The Entrepreneurial Operating System (EOS) is designed to get everyone on the same page with leadership’s Vision, its plans to gain Traction, and remain a healthy and cohesive team. The Annual Planning two-day agenda is time-tested and proven to do that.
Goals for the year are broken down into manageable quarterly projects. Like a twenty- mile march, businesses must decide the “mile-marker” they expect to achieve by the end of the quarter. Deciding whether the company is “on-track” is based on the achievement of the mile-marker, or not. The next Quarterly Planning can provide adjustments and/or additional resource allocations to get back on-track. Weekly departmental Level 10 check-ins and problem solving provide the detailed execution and energy to complete the twenty-mile march.
It’s the same as spring cleaning. The intention is to make the house tidier and better. Great Annual Planning has the same intention for our businesses.
*Pace Logistics Lab is grateful for EOS Implementer Ken DeWitt’s contributions to this article, and for his patient and insightful guidance and advice. For more insight from Ken, please see the following links to Ken’s blog, or to book a call.
