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Conducting the Quarterly Business Review
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The quarterly business review should focus on key areas of performance to key measurements, budget, forecast vs actual results, and trends that may affect the business The trends may be positive or negative, and you should review them in light of industry performance In addition, a
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Manager s Guide to Business Planning
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Strategic Plan Formulation
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Annual Business Plan Development
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Q1 Business Review
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Q3 Business Review
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Q4 Business Review
Exhibit 6-4 Timeline for the review process review of the major projects and initiatives by function should be completed to ensure progress is being made and to recheck that business priorities have not changed so significantly that they would warrant a change in the direction of any of the projects or initiatives
DASHBOARDS
Many companies use dashboards or displays that create a visual review of daily, weekly, and monthly performance based on selected measurements Dashboards can be as simple as using a TOOLS white board to display the information Other options include use of a bulletin board to exhibit status reports and updates for all employees to read A few companies are using ticker tape displays of overall company performance, including stock prices and sales updatesThe main purpose of the dashboards is to highlight the information so that everyone knows where the performance stands at that point in time
Income Statement Top Level Revenue Cost of Goods Sold = Gross Margin
Questions:
I I I I
Did the company revenues achieve the quarterly targets How did this performance compare to the same period last year Are there any historical trends that are impacting these results Were there any issues in the cost of goods sold that need to be corrected (looking at any discounts and allowances that may have impacted the results)
Tracking, Controlling, and Reviewing the Plans
Were the gross margin dollars and percentages at the acceptable level as planned How did this performance compare to the same period last year Gross Margin Operating Expenses = Operating Income
Questions:
I I I I
Were the expenses within 5% of budget Was the operating income at the target for the quarter met What extraordinary expenses have occurred during the quarter Are there any worrisome trends that must be addressed
Functional Review Sales and marketing report on: I Top-line sales: broken out by product or service lines I Product mix: profitability by product line or service lines I Selling costs: impact on profitability
Operations report on:
I I I I
Output: ship dollars Cost: materials and labor Quality: scrap and reject rates Operation improvements: process and project management Performance to budget: within 5% Major objectives and projects: performance to schedule Other notable developments
Support functions report on:
I I I
Quarterly Individual Performance Reviews
The quarterly individual performance reviews are essentially feedback reviews on progress against objectives This is an opportunity to ensure that individual performance plans are on track for successful completion, and if they re not on track, midcourse corrections can be made Coding and exception reporting play an important role in identifying those areas that may be cautionary or behind in schedule
Manager s Guide to Business Planning
Conducting Successful Individual Performance Reviews
The consensus among employees is that they dread their performance reviews because they re too often surprised with the feedback they receive The main reason for this is that performance plans are poorly prepared and don t provide an objective starting point for both periodic feedback and the annual performance review If the business planning processes outlined in this book are followed, including the links between company and functional and individual plans, much of the negative perception of this process can be eliminated
Employee-Centered Coaching Model
Employee-centered coaching shifts the responsibility for preparing a performance feedback session and presenting an update to a supervisor for review and comments In preparing for this session, the individual should use the performance standards prepared at the start of the business year as the foundation for the meeting The main premise in using this model is that an employee will likely be aware of strengths and improvement areas and it s a positive start to a discussion when the person responsible for their performance has an opportunity to tell a story, versus being told about their performance by the supervisor The supervisor can be more effective as a coach during this process You can facilitate the employee-centered coaching model in the following manner
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