For many entrepreneurs, what matters in business is a good plan. For as long as there are clearly defined goals and there is a plan to actualize them, the business is as good as set up for take-off. But that is not it. Business goals need to be assessed critically every now and then if they are to be actualized in good time and as per the initially intended standards. Besides, being informed as an entrepreneur is your first step to excellence especially in today’s increasingly competitive marketplace.
Having an accurate, detailed assessment and planning of your business goals gives you comprehensive details of the data you need to facilitate growth. It tells you how profitable the business gets after every goal is achieved, how viable a goal is before execution, and gives you an in-depth understanding of which goals should be prioritized and which ones can be shelved for later. That is the power of a business assessment of your business goals.
Here are four more manifestations of this power:
1) HELPS YOU MEASURE EMPLOYEE PERFORMANCE
Don’t wait until a goal is achieved for you to measure the performance of individual employees. Waiting until the end might give you a false idea of a production-oriented work environment whereas, in the actual sense, it is the quality of a few employees that made the goal achievable. There could be lots of dead weight that your company could shed off and still remain productive.
Such assessments can also help you determine if an employee’s skill set is appropriately matched to their job description. Chances are that an employee’s talents are under-utilized in their current position, a problem that can be identified and rectified through regular assessments. Who knows, maybe a simple tweak in your workforce might help you achieve goals faster.
Speaking of employee performance, if you’re expanding in China, for instance, you want to boost performance in your Chinese team. In that case, you might need to outsource some HR functions to a China employer of record so as to free up and redirect some of your time to boosting employee performance. Such an organization can help you handle payroll processing, international compliance laws, and employment laws in different jurisdictions.
2) ASSESSMENTS KEEP YOU ACCOUNTABLE
One of the most important reasons to assess your business goals is to hold yourself accountable for the plan, the projections, and proposals therein, no matter how tough things get. Sometimes entrepreneurs assume that since they own an idea because they are in charge of and dedicated to chasing their entrepreneurial dream, it is obvious that they will spare no effort until the dream is realized.
In more cases than not, unforeseen challenges crop up and hinder the progress of the initial plan. The challenges of dealing with circumstances you could not have foreseen can easily crash an entire plan. With continuous assessments, however, you are able to notice possible hindrances early enough so you thwart them before they pile up and crush your dream. Your accountability starts right from the outset and that makes it easy to retrace your steps in case you lose your way due to unavoidable challenges.
3) HELPS YOU EXPEDITE GOAL EXECUTION PROCESSES
When you understand employee performance and place each individual where they are best suited, it becomes easier to execute a goal. The regular assessment also eliminates redundancy and prevents duplication of roles and efforts within the execution team.
When you keep account of every step you make during the execution phase, it becomes easier to align goals and envision them better, and that brings efficiency. Everything moves quicker as a result.
4) HELPS YOU UNDERSTAND THE HEALTH OF YOUR COMPANY
Sometimes you will be too busy chasing goals that you forget to review your assets, operational infrastructure, liabilities, and cash flow. The health of your business can deteriorate to the point of collapse, so you are blindsided in the end. Goal assessment gives you insights into the strengths, weaknesses, and risks that exist within every department of your business, so you don’t take unnecessary risks and ruin everything. It helps you with strategic planning, forecasting, inventory management, and business development along the growth curve.
The power of business assessment is too immense to fit in a single post. The key here is to invest in as many business performance assessment programs as possible and to work in liaison with your team to ensure that every assessment result is reflected in each project.