You’ve spent a lot of time getting to the output stage. Now, there are the big goals and objectives that you want to deliver as an organization. In this example, the big goals have been narrowed down to Revenue, Operations, and Admin.
Clarifying Goals
Each of these big goals has been clarified for everyone within the organization. With key deliverables that, when achieved, should support and feed into each other. For Revenue, the business needs to grow by 5% (including the addition of $100K in new product revenue) and achieve an 8% EBITDA. Operations will implement a new e-learning course every quarter, reduce shipping costs by 3%, and create a new marketing program to support the new product launch. Lastly, the Admin goal is to close out the previous month earlier and create a consolidated financial report by the 8th business day of the month.
Department Goals
From here, each department now looks at these clarified goals. They then figure out how they will support them with their own tactics. In this example, I have focused on the Sales Department and how they will contribute. Knowing they have to grow the revenue by 5% means they will hire a new sale rep. Each rep will be accountable for $1,200,000 in sales. To support an 8% EBITDA, the Sales Manager will ensure that average discounts do not go below 7%. The Sales Manager then looks at the Operations goals and Admin goals to see how they can support with tactics. Rinse and repeat for each department in the business (Installation, IT, Accounting…).
Now we’ve gone from having 3 big buckets to clarifying what goes into each of them. We then asked each department to figure out how they will support the goals with their own tactics. From here, the next step will be to take it to the employee level. Where they will focus on how their individual contributions can support the organization.
As we move closer to finalizing a franchise business strategy. It becomes clearer that we are trying to get the individual contributor (employee) to understand their importance in getting the organization to achieve their big goal.
