Over 20% of small businesses fail in the first year, and almost 50% fail within the first five years. If yours has survived the odds, then congratulations, as it’s no easy feat.
However, it’s no time to sit back and relax.
There’s always room for improvement, especially if you’re in a competitive industry.
So what will you improve? Do you even know what your business’s weaknesses are?
If you don’t know the answers to these questions, then read on. Here are five steps you can take to create an excellent business performance improvement plan.
1.Identify Performance Gaps
Look at your current business operations and look at where you’ve failed to meet expectations. For example, you might have low sales numbers, or maybe you’ve got high employee turnover. You might also find that you have inefficient processes.
If you’re struggling to identify performance gaps, then take a look at the data. Analyze key performance indicators (KPIs), as they’ll tell you exactly the specific areas that need improvement.
2.Set Clear Goals
With clear goals, they’ll be measurable so you can see if your efforts paid off in the end.
Set SMART goals, which are:
- Specific
- Measurable
- Attainable
- Relevant
- Time-bound
These factors ensure that you stay focused and on track, so it doesn’t take you forever to turn things around.
3.Find the Root Causes of Performance Gaps
To find your brand’s weaknesses, you’ll need to do a thorough analysis of your processes, systems, and organizational structure. Talk to your employees, customers, and stakeholders to get their insights and perspectives. After all, two (or more) heads are better than one.
You can also use tools to identify underlying issues, which will save you time and effort. Some great ones include:
- Process mapping
- SWOT analysis
- Cause-and-effect (fishbone) diagrams
4.Develop Strategies and Action Plans
Next, you’ll need strategies and action plans for each root cause of performance gaps. Take it slowly and carefully, as each strategy will need to be broken down.
These strategies need actionable steps, and you’ll need to assign responsibilities and timelines to ensure accountability. For example, if you want to take care of customer complaints, then you’ll want to work on your customer relationship management (CRM), and this can be handled by a NetSuite developer.
To succeed, use industry best practices, leverage technology, improve your training programs, and revise policies and procedures as needed.
5.Monitor Your Progress
As you put these strategies and action plans into motion, monitor your progress by tracking your KPIs. Make sure you use real-time data so you can make necessary adjustments quickly.
Keep getting feedback from your employees, customers, and stakeholders, so you’re aware of any new challenges or opportunities.
Achieve Business Performance Improvement
Business performance improvement is essential in keeping your competitors at bay. If you think you’re already doing well, then think again.
Without a solid business plan, your company growth will stagnate, and eventually, you’ll have to shut your doors. But if you’re proactive, you’ll have a fighting chance.
To learn more about business success, keep reading our blog posts.
