Monitor Results Frequently
to Facilitate Focused Execution

While some firms still monitor results on an annual review cycle, monitoring results only once per year makes it difficult to manage execution. We recommend a minimum review each quarter. But an ideal cycle is to monitor results monthly and, for some businesses weekly, so that you are working with real time data. The review process should include all of the members of your executive team and, if done once each month, should take no more than 1-2 hours.

1. Review and evaluate performance data for each of the key measures established in your annual plan.
2. Evaluate strengths and weaknesses and emerging new opportunities and threats.
3. Identify the causes of performance below plan and create action steps to get the plan back on track, complete with measures, new targets, and assigned accountabilities, as appropriate.
4. Communicate the results of the review and planned actions.

Monitor Results Through a Year End Review

At the end of the year, you should evaluate how you performed for the entire year. By necessity, this review will be much more in-depth. Just like a personal fitness program, it is essential to start with an honest evaluation of your current condition. Like the routine business reviews to monitor results conducted throughout the year, maximum value is obtained with participation by the entire leadership team. Participation by the CEO/President/Owner is mandatory.

The first step is to gather your mission, vision and values statements, your overall business plan, the measures used to evaluate progress throughout the year and any evaluations done the previous year. It can also be helpful to conduct a survey of employees to evaluate levels of engagement and accountability. All of this material should be distributed to the leadership team in advance of the meeting for their review.

During the annual planning meeting, review your mission, vision and values, your goals for the year to determine if priorities have changed and, if so, what should be left out and or added for the following year. Then, renew your mission, vision and values by challenging your team to evaluate whether you are living up to them from the perspective of your stakeholders and if not, determining how they need to be changed.

Success Hinges on a Well-Defined Market Position

Success depends upon having a clearly defined market position that is unique to you and valued by your customers together with a business plan with well defined goals. Review these elements by developing, prioritizing and achieving consensus on enterprise goals for the coming cycle. No organization has unlimited resources, so develop and agree upon a list of activities in which you will no longer invest resources.

Now that everyone knows where you are going, it is time to establish specific measures that communicate strategy. Determine annual targets and establish milestones to be achieved along with any supporting initiatives that will need to be developed. Execution processes (people, strategy, process) are enhanced significantly if you then make sure that you have alignment as described earlier in this report.

Your alignment process should focus on people knowledge and skills, policies, processes and technology to examine relative fit and support of your strategic direction. This process should yield barriers which will need to be addressed.

The final step is developing an individual performance plan for each member of your leadership team, paying attention to alignment across departments, and defining performance objectives which will guide planning within their individual units. This ensures all enterprise goals are assigned department level objectives, measures and targets and that each member of the leadership team understands and has agreed to individual accountabilities. Leaders exit this stage understanding and agreeing on exactly what is expected of them, knowing what they have to do to engage their team, and fully aware of how they will be measured as the firm monitors results throughout the year..

All the pieces are now in place for execution and managing accountability.