Establishing Your 2024 Company Vision Part 2: The Playbook
Here's a simple yet powerful approach for communicating next year's plan to your team.
I'm taking a different approach to business planning and "rallying the troops" in 2024.
This new approach involves two tools: The Thinking Model and The Playbook.
Last week, I shared The Thinking Model, a simplified profit & loss forecast that considers a minimum, target, and stretch model. (Here's the post if you missed it; you'll want to start there before reading this further.)
This week, I'll share The Playbook.
Let's jump in.
What is The Playbook
The Playbook is a 2-3 page Word document that memorializes next year's plan.
It answers a few questions your team will want to know in the year ahead:
What is our overall goal for next year?
What are our individual and departmental Key Performance Indicators (KPIs)?
Who needs to do what for us to hit our KPIs?
What new initiatives will we try next year?
What's in it for me if we hit the stretch goal?
How to Generate Your Playbook
First, download the template I made for you. (Word, Google Docs)
Now, let's walk through how to fill it in.
Skip the [Overview] for now; we'll come back to this.
Step 1
The first chart you see is a company-wide chart showing your revenue and net profit (as a percent) for the minimum, target and stretch goals.
Simply import these numbers over from The Thinking Model.
Step 2
Identify your company's key departments, vertices, teams, etc. These are the lines in bold.
In my template, I listed:
Lead Generation (Marketing)
Sales
Operations
You may have more/different sections than this. It does not matter as long as it makes sense.
Step 3
Under each bold heading, you'll see a simple chart.
The rows are labeled Minimum, Target, and Stretch.
The columns are labeled KPI 1, KPI 2, etc.
Think through the KPIs that impact that portion of the business the most.
For example, under "Sales," perhaps one of your KPIs is proposal conversion rate.
You'd change [KPI 1] to "PCR" and then list a minimum, target, and stretch KPI.
Repeat this for all charts, ensuring you have 1 or more KPIs listed for each department or team in your organization.
Step 4
Now that the charts are filled in, go back to each section and complete the bulleted lists below each chart.
First, list 2-5 key initiatives you'll try next year that have a great chance of improving your KPIs in that section.
For example, in "Sales," a key initiative that may increase your proposal conversion rate is offering financing. So, your first bullet here would be "Identify and onboard a financing company." Bonus points if you assign each key initiative to a team member.
Next, list all your team members within this business area.
Next to their names, insert an individual KPI that will "ladder" up to the company KPI.
For example, if your "Sales" KPI is a 50% proposal conversion rate for your target row, when you list your salespeople, their KPI may look like "Bob - Maintain a 50% proposal conversion rate."
Step 5
At the end of The Playbook, you'll see a headline called "New Initiatives."
Add 2-5 new products, services, customer segments, etc., here that you want the company to test or roll out next year. If nothing else, these will lead to lively discussion when you present your playbook to your team.
Step 6
The last section is called "Stretch Reward."
Take some time to consider a reward for the entire team should your company achieve the stretch goal in The Thinking Model.
While most people will be a bit more motivated by their individual performance-based pay, having a company-wide goal and reward adds vibrancy to the day-to-day workings of the business.
We're piloting a new stretch reward concept in 2024, and I'll write about it once we get it set up with the team.
Step 7
Now, go back to the very top of The Playbook and write a 2-3 sentence overview of The Playbook. Make this exciting, motivating, and engaging.
You're done!
But What Now?
Don't keep The Playbook a secret. Share it with your team! Ask them for feedback! Edit it as needed until everyone looks at it and nods, agreeing that it's both challenging and attainable.
Then, use this playbook in future EOS sessions, all-hands meetings, quarterly check-ins, planning sessions, and decision-making meetings.
Did a new opportunity pop up in the middle of the year? If so, does it align with The Playbook? If yes, that might be a sign to go for it. If not, consider whether it's worth the time, money, and effort to initiate.
I hope the last two weeks have inspired you to be proactive about the year to come.
If you need help with The Thinking Model or This Playbook, book a free call with me, and we can figure it out together!
I’d love it if a few more folks read this newsletter. Might you consider forwarding it to someone you think might benefit from it?
Books of Note: If you're a parent or someone who interacts with children regularly, Natureshock is a must-read. It offers some surprisingly interesting research data on kids, their social circles, and the homes they grow up in. Highly recommend!
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