Keeping a Small Business Focused and on Track

In the CrowdVine discussion thread for the upcoming Web 2.0 Expo, Tony Stubblebine of Crowdvine asked people what tricks they use to keep their business on track.

Here's my answer, drawing on my experience with a number of organizations:

To keep a business on track, I use:

1) A strategic plan that lays out major goals (e.g., win at least 3 reference customers in key market X), each of which can be tracked by objectively measured milestones or supporting goals. Almost everyone thinks of a revenue target as an obvious strategic goal—and it can be—but it's just as important to think about other goals that address the company's position in the market and the company's various capacities (engineering capacity, sales capacity, etc.). In some cases, it might be better to settle for a lower revenue target while managing the company in such a way to address a latent deficiency. For example, it might be better for a cash-strapped company to manage its activities and sales expenses to end the year with more cash (but lower top-line revenue), instead of blowing out a revenue number with expensive sales campaigns and ending up with nothing in bank (again) and no ability to, say, hire critical engineers for the product overhaul planned for next year.

The main thing is to ask: Where do you want to be by the end of the year? What do you want to have in motion? Capture those ideas in specific goals and objectives.

All the company's major activities should be subsumed in the strategic plan. If you're working on something, you should be able to identify which one of the 5-10 major goals for the company it relates to. (And if you find that you've identified more than 10 goals, pare them down, especially if this is your first time trying to manage operations for an entire fiscal year according to a strategic plan.) Every organization, even small consultancies and non-profits, should develop and manage to such a plan. At the end of the year, you should be able to look back and judge how well you've done. If you've developed a good plan, you're going to find that you've not only hit your revenue goals, but that you've built a stronger organization that's better positioned for success.

2) A company mission statement or a summary of core values (see Collins and Porras' "Built to Last"). For example, I consider being responsive to customers to be one of the highest values for my work. One of the ways I keep my business on track is by asking myself several times each day, "Am I being responsive to my customers? Is there someone I should be calling?" If there's a value or behavior that's key to your company, note it. Write it down. Live by it.

I also:

3) Align technology to support #1 and #2. Take advantage of what's new (e.g., some of the great stuff that's going to be shown off at the Web 2.0 show), but don't get distracted. Use everything you can find—from software to devices to the right office chairs—that eliminates distractions, promotes productivity, and helps your employees meet your organization's goals while working in accordance with core values.

4) Hire people who are genuinely interested in growing a great business. (Suggestion for hiring managers: mention that you have a strategic plan, and see how the candidate reacts. Does he or she ask to see it, or does he or she simply nod and move on?)