Combine this with other statements in the article, including:
- Over 70% of the most successful businesses had some medium-term business plan compared to less than half of the unsuccessful.
- 1/3 of successful businesses had a long-term roadmap compared to 13% of the unsuccessful.
- Contingency planning, or business continuity planning, is something that every business should do to ensure long-term success.
- 65% of the most successful businesses reported that they had three or more business metrics in place compared with just over 40% for their counterparts.
The article clearly illustrates that there is a direct correlation between solid business planning combined with performance monitoring and successful businesses.
As managers and owners of companies we are constantly required to make critical business decisions. How can we make good decisions if we’re not planning and looking forward? How do we know that the decisions we make are going to move us toward our long-term goals if we don’t have measurements that track our progress? There is an old saying that “It is very difficult to drive by looking in the rear view mirror. You must look forward to see where you are going.” If we continue with this saying, it is also difficult to gauge our performance on moving forward if we don’t have measurements in place to help us (such as the compass and speedometer).
Many businesses do not take the time to plan for the unexpected; those that do have an important edge in achieving long term success. As managers and owners of companies we need to step back and ensure that we have a clear direction and goal in mind.
As the article points out, we need to:
- Create a clear short- and medium-term plan on expectations as considered in the current economic and competitive environment.
- Create a longer-term roadmap moving toward our goals.
- Create contingency plans for major events (e.g. fire, flood, etc.)
- Create clear measurements and business metrics.
- Continuously monitor the measurements and track progress.
Many businesses don't take the time to plan for the unexpected; those that do have an important edge in achieving long-term success. As accountants and business advisors, we need to help our customers' businesses step back and ensure that they have a clear direction and goal in mind.
Contact us for more information.