“What Are Your Projections For 2024?”
Projections for your organization are NOT resolutions.
NOR are they based on feelings.
Projections ARE goals, based on data, and a clear-eyed analysis of what you will accomplish as a team. You will need a starting point, clearly defined goals, and action plans. Plus, you need buy-in from your team.
For this process, remember the S.M.A.R.T. requirements for goals. Projections are goals. They must be: Specific, Measurable, Accountable, Realistic, and Timely.
Here is the winning process for making your 2024 projections:
Because projections must be based on data, you will need a year-to-date operating statement of income and expenses for October 2023, for each department. We will use this document to determine an average month’s performance for the year. Because October is the 10th month of the year, simply move the decimal point 1 digit to the left to produce an average month’s numbers.
For example: If the year-to-date expense for advertising was $150,000, your monthly average was $15,000. If year-to-date sales were $20,000,000, your monthly average was $2,000,000. Do this for every line item on the statement to produce an average month’s performance for each department.
Next, gather your team leaders, by department, for projections. Present these average monthly performance numbers based on that October statement. Ensure that these leaders understand what is measured by each line item. This understanding will shape their 2024 goals. Then, help them project an average month for 2024, line by line. This average month will be the monthly yardstick by which you measure their performance.
Next, having made their projections, give these leaders 1 week to produce action plans to achieve them. These action plans must address the 4 Ps: People, Processes, Products/Services, and Promotion. What will the leaders need to enhance or change in these 4 areas? These action plans must be written.
After they have produced and submitted their own departmental action plans, review their plans with them. Ask tough questions, helping them to define what changes they must make to achieve their projections. Then facilitate a group presentation where each team leader will present both their projections, their action plans, and answer questions from the group.
This process creates team leader ownership of their projections and their action plans. If helps them realize how their department’s performance affects the other departments. Plus, by measuring their results monthly against their projections, they can make course corrections to solve problems or to take advantage of opportunities.
To install this amazing process in your organization, contact me, Larry Bonorato, at lab@larryonlearning.com, or by phone or text at 864-630-2625.
Let’s grow together in 2024.
That is today’s Morning Minute.
