When you are in business, regularly reviewing and evaluating your performance is the key. Of course, how will you know where you stand if you do not perform such reviews and evaluations? Here are some steps you should follow to effectively review your performance.
- Gather all the information from different sources
Gathering every single bit of information about your performance from different sources helps in increasing objectivity as well as ensuring that you consider all factors that impact performance. The information you need to acquire should include all objective data such as call records, sales reports or the deadline reports. Some other important information includes personal observation results, feedback received from others, environmental or external factors which impact performance, etc.
- Assess core activities
To begin with the review process, you should evaluate your core activities. Know the products you make and the services you offer. In the assessment process, determine how effectively you’re able to match the services and products to the needs of the customers. It is also important to determine how successful are your products and services and which of them are doing better than the others. Also try to find out the underlying issues. Things like marketing, sales, pricing, etc. should be taken into account.
- Assess efficiency of your business
See how efficient your business is going. See if there are any kind of internal factors which are holding your business back and what can be done about these. Consider factors like premises, facilities, information technology and your people and their skills. Find out how each of them are performing and where you’re lagging behind.
- Review the financial position
Usually, poorly managing finances leads businesses to fail. If you’re not following the financial plan that you had developed then you need to determine the underlying causes for that. As far as the success of your business is concerned, development and implementation of financial plan proves to be the key. When reviewing financial position, take a look at cash flow, working capital, cost base, any borrowing, and growth.
- Customer & market analysis is important
Every business starts with proper marketing plan which is part of the business plan. When evaluating your performance, you should asses where your current marketing plan has taken you. If it’s not working then determine where you need to make changes and if it’s working well then find out where you need to improve. Continuously update the marketing plan by revisiting markets as well as taking feedback from customers.