During the summer, business owners should catch a break and think about their goals as they rest and recharge. Planning for future success requires knowing what you are doing well, as well as where you are struggling. Today, we’ll show you three categories you can review-strategic performance, tactical performance, and financial performance-and some questions you may want to answer.

We promise that thinking about your business’ bigger picture won’t ruin the holidays. In the first place, this task does not always have to be formal. Some of the questions we offer in this newsletter can be kept in the back of your mind when you are engaging in fun activities. When we are recharged and away from everything, we get the most insights into what works and what does not. We will be able to recalibrate both our professional and personal lives with the answers. A business is often the most valuable asset of its owners, whose value increases as the owner’s input into the business decreases. This may be counterintuitive, but it is true: A business is most valuable when it is a turn-key operation – not reliant on the owner. After all, when a business is sold, or transferred to the next generation, the current owner doesn’t go with it; the business must be able to continue to generate revenue and profits for a successor owner. This is why there are many reasons why business planning impacts loved ones, friends, employees, and even the entire community.

Strategic Performance: Reviewing the Big Picture

Reviewing your strategic performance means taking a look back at the goals you set earlier this year. Asking three key questions is an excellent place to start your strategic-performance review:

1. Have you set short-term and mid-term goals? If the answer is no, why didn’t you do it and what can you do to find the time and other resources for this kind of planning?

2. Did you meet those goals?

3. Why did you exceed, meet, or underperform on each of your goals?

4. If you are making great progress, what could you have done differently, and still meet all of your goals?

A successful planning process begins with these questions. Their importance lies in the fact that they direct the strategies you will implement to strengthen your company’s Value Drivers. Consider Value Drivers as the things that make your company more valuable to someone else without you at the helm. A company with strong Value Drivers tends to be more valuable. Do not panic if you are unfamiliar with this concept. We will soon offer free workshops on growing business value. If you would like more information, please do not hesitate to contact us.

Working with a trusted advisor team can often help owners explore deeper and answer these questions objectively once you’ve formulated some preliminary answers. Your trusted advisors will challenge your assumptions and help you hold yourself accountable. You can ask yourself what specific strategic goals you set and how you pursue them. You might ask yourself some deeper questions about strategic goals, such as:

• Were we able to protect or increase market share? How did it turn out?

• Did we work to mitigate risk? For example, did we diversify our customer base?

• What was the performance of our management team? What were their biggest successes and challenges?

Assessing strategic performance can help you determine whether your big-picture planning was successful. It can also help you supplement strategies that worked while tailoring strategies that didn’t.

Tactical Performance: Which Actions Work Best?

Reviewing your tactical performance can help you determine which actions contributed to your strategic goals’ success or failure. When reviewing your tactical performance, consider the following points.

Did you break down larger goals into smaller, more achievable goals?• In what ways did you quantify expectations, measure results, and implement what you learned?• How do your employees and team members know whether they have contributed to the company’s quarterly targets?
As you answer these questions, you should emphasize the nuanced steps you and your company took to achieve your strategic goals. Your answers may help you refocus on the steps you need to take (or continue to take) to achieve success in the future.Financial performance: What You Have vs. What You Need
Finally, reviewing your financial performance can help you identify where you stand in terms of your personal and business goals. In order to achieve many of your most important goals, you’ll likely need strong financial standing. Take a moment to ask yourself these questions about the financial performance of your company.
• Did you meet your financial targets? If so, why? If not, are your goals realistic?• In a personal and professional sense, how does your performance affect your future plans?• Based on this year’s financial performance, should you adjust your goals?
Realistic goals and proper reviews can provide a road map
A periodic review can help you determine the best course of action to achieve your goals. In addition, it can help you set new goals or recalibrate old ones to take into account the context in which you are working. Keeping track of your strategic, tactical, and financial goals can help you see how your unique business fits into your business and personal planning.We strive to help business owners identify and prioritize their objectives with respect to their business, their employees, and their family. If you are ready to talk about your goals for the future and get insights into how you might achieve those goals, we’d be happy to sit down and talk with you. Please feel free to contact us at your convenience.

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