Exit Planning, by definition, has an end-game in mind. This implies defining the goals, planning the strategy to reach them, and executing the plan. I am a huge fan of the annual strategic planning and budgeting process – they are foundational. However, many businesses have great plans on paper and yet fail to finish well. Why?
I just finished reading a book entitled “Better” by a surgeon named Atul Gawande. In a profession where lives literally depend on how well one does one’s job, he has a passion for the pursuit of improvement in every area of medicine. He shares numerous examples of how doctors in less developed parts of the world have actually developed far more successful processes than wealthier countries. The major message is – they pursue delivering a “better” service to their clients.
An underlying theme is that improvement comes through a long-term commitment to improvement – in the big and small things. And there are two sides to this:
Don’t settle for “good enough” – always seek to serve your customers better – with a better, cheaper, more effective product or service.
Persevere in overcoming obstacles – take the long view to solve the problems that face you.
Obviously, this is a team effort and he makes five simple recommendations that can help build a culture of “better”: (I have listed his recommendations and “translated” them to “business speak”).
1. Ask unscripted questions - Ask fresh, unplanned questions - what don’t you know about your customers? Take the time, not just to do surveys, but think out of the box; explore getting to know your customers better so that you can serve them better. Have real people connect with real people and ask honest questions. “Listen” to what you hear.”
2. Don’t complain. Don’t complain about the challenges – every business has challenges that need to be overcome. At times they may seem just “too hard”, however focusing on the problem can be an excuse to not try to overcome it. Persevere in solving the problem.
3. Count something - Every business has an income statement and balance sheet, however, what really drives your business? Think outside of the box to measure the performance of the business, so that every area can be measured (often called KPIs). Quantifying “good” can help you move to “better”. Then, when your numbers don’t look like they should, ask why to assess and adjust.
4. Write something - In a book called “Poke the Box” Seth Godin suggests things change when people take the initiative to start something. Write down ideas, communicate them and act on them - encourage others to do the same.
5. Change - Change hasn’t happened until change happens. identifying problems, writing about it, and talking about it accomplishes nothing unless things are put into action. This requires a willingness to change “the way we have always done it”. Many successes come through failed attempts at change and learning from those mistakes.
So, start today. Pick one area where you can improve and pursue making it better. Then repeat.
Invest 12-15 minutes in the FREE ExitMap® Assessment and get a 12-page report scoring you in four key exit planning areas: Finance, Planning, Revenue/Profit, and Operations.
