Steps to Turn a Business Around

If you run a business that is struggling then I have a simple step by step process for you to follow that will make a huge difference. I will spell it out here and expand on each section over coming posts:

1. Create a compelling vision or goal for your business
2. Analyse where you are currently in relation to your vision
3. Set a strategic management plan to bridge the gap between where you are now and where you want to be
4. Set up a kpi system to track all the important key performance indicators so you know if you are on track or not
5. With the information create a balanced scorecard system to prioritise your energies (focus on the 20% that gives you the 80%)
6. Constantly monitor the information to ensure you are on track or not and adjust when necessary

There is much more detail neede than this but this is the outline, stay tuned for more.

More Balanced Scorecard Detail

As I have stated earlier, the balanced scorecard can be a very useful mechanism for keeping track of important information. If this system is set up correctly with thought and implemented with care then it can increase a businesses returns.

If your business has a strategic plan that you are happy with then that is a good head start, you can then use the balanced scorecard to implement this strategy. You will be able to compare the 'score' this month with last month, you can compare your business with others in the same industry (benchmarking).  This way you can track the effectiveness of your business overall or even the component parts of your business such as marketing for example. You might have key performance indicator of a set number of new leads acquired each month, if you have this target being met each month you should be on target to achieve your results, if you have the required conversion rate (another kpi).

The real value of the balanced scorecard is when it is used to weight the importance of kpis, or outputs of your business. If this element is truly understood and applied (rarely in business is this true) then it will revolutionise your results. This is because not all elements of a business or output of a department have the same impact on the results.

The balanced scorecard can really be this simple and powerful. Don't underestimate it.