Nobody likes to change plans. So if something goes wrong, we often try to conjure reality from wishes:
- “We will recover yet!”
- “The beginning of the year is always difficult”
However, when it goes well, we tend to be cautiously optimistic:
- „Let’s wait till next quarter”,
- „It can still be different” (especially if the bonus is annual and not quarterly ;)).
I can understand both approaches. There may be so different sources of success and various reasons for failures. It is more important, however, to know what and how we do with this information.
That’s why it is worth looking at the results in a more systematic way and NOT TO ASSUME any hasty conclusions.
How to approach to plan review?
So if you are thinking of plan review – the order of questions is critical:
1) First of all, check the assumptions about external and internal factors.
Every plan is based on some hypotheses about what the market will look like. That’s why you should check now:
- if the conditions of the environment haven’t changed (e.g., regulations, inflation, cost of energy, or perhaps there where some hiccups in the supply chain? etc.),
- what the competitors have done (though there is a tendency to forget about it during planning)
- and most importantly, how consumers/customers/ buyers have reacted to our offer
How did these conditions affect the implementation of plans? Are there any significant changes?
If YES – If the changes are fundamental and we know that they are affecting the results, there are reasons to revise the plans.
2) However, if nothing significant has happened, only now you can proceed to review the results and evaluate the realization of the plan.
This is the reason why we need KPIs: Key Performance Indicators.
In my opinion, they are not only assessing the efficiency and quality of work, but above all, they are to assess how our business is doing against expectations set earlier; and if any corrective actions are required.
The end of the quarter is an opportunity to review where we are. And – to make it clear – it’s not about revolution and turning everything upside down.
So if you are aiming to deliver on your annual plan, perhaps it’s worth checking how it is going against reality? Because there is nothing so demotivating as unrealistic plans!
And you, how do you review the implementation of plans?
What if the KPIs are met or exceeded? – what I wish you above all!