Main Idea:
What made you successful in the past? Was there a particular product, service or system that was critical? Can you name it and quantify it? Is it just as important today as it was five years ago?
Expansion of the Idea:
20 years ago, Spencer Johnson wrote the book “Who Moved My Cheese”. Most of us have read it, thought it was good and then promptly put it away. However, it is just as timely now as it was then. The basic story is about two mice in a maze who lost their cheese. They have to find new cheese. The cheese is a metaphor for what is important to us. Five years ago, most businesses were doing fine and we became complacent. Things have changed. We have to find new cheese.
What does this mean in today’s context?
We have to decide what will be important for us for the upcoming year. We must know our financial numbers and key performance indicators that tell us how we are doing. However, we can’t use the same old numbers that we used in the past. We should be more intentional about what numbers we use and set goals for those numbers. Here are a few ideas on things to look at:
Customer profitability and retention
Lead time and costs of acquiring new customers
Employee engagement and performance
Business operations and systems
Cash flow projections and budgets
Vendor and supply chain performance
Product and service performance and viability
Leadership and Management performance and development
Risk management and potential bottlenecks
There is nothing new in my list. However, what needs to be new is how we apply it. Most small business owners don’t make full use of key performance indicators. And during 2020, those numbers were worthless for some industries. For 2021, I think it would help all of us if we became very intentional about what our goals are and put together the models to make sure we are on track.
I think that 2021 will be a very difficult year even after the vaccine is rolled out and we have herd immunity. People’s attitudes and habits have changed. This could impact their buying habits as well as their goals. We might lose key employees or customers. By planning now, we can set ourselves up for success and minimize the potential for failure. There will be a new normal. We need to know what it will be and how we can thrive.
Here are some questions or comments to consider:
Read or reread “Who Moved My Cheese”
Define what is your cheese.
What is my action plan for 2021?
Do I have full key performance indicators, cash flow plans and budgets for my business?
Have I identified my top 2 or 3 key performance indicators for special scrutiny?
If not, create them based on expected reality for the new year?
Determine what additional actions you need to do to make 2021 successful.