So many Rhythm companies start off as what we consider “simple” companies. They are experiencing steady, but not explosive growth. They might only have the executive team using Rhythm. Some have a relatively flat structure with few locations and departments.
Rhythm Blog | Tiffany Chepul
by Patrick Thean and the Rhythm Team
You go to your doctor every year for a physical, but you rarely do this for your business. As you prepare your team for Annual Planning, it’s a great time for your annual check-up!
Do you feel like there might be some underlying issues as to why your team consistently falls short on execution? Or, that holes in your strategy might be contributing to things just feeling “off” at your company?
We work with hundreds of companies to help them find and address gaps in their strategy and execution using the Think-Plan-Do methodology.
Hearty congratulations are in order for Rhythm client F.R. Drake!
F.R. Drake is a leader in the food equipment industry. They have consistently grown through acquisitions and market expansion. Today, they hold the largest global market share in the frankfurter loading system space.
Hearty congratulations are in order for long-time Rhythm client Signature Consultants!
Not only have they experienced mind-blowing growth in the IT staffing space (3x compared with their industry!), but they were also recently featured in the NCMM report, THE DNA OF MIDDLE MARKET GROWTH: The Three Types of Growth Champions and the Factors that Drive Their Success.
For the most effective weekly team meeting, your executive team should consist of 8-10 people. If your group is too large, consider who truly should be part of the executive team meeting. Perhaps some people should participate at the departmental team-level weekly meeting only.
Also, the executive team should be using your Quarterly Plan as the framework for the meeting. The plan should consist of 3-5 Company Priorities and 3-5 Personal Priorities each. Owners of those Priorities should have statused them Red, Yellow or Green prior to the Weekly Meeting.
Remember when you could fit your entire company into a conference room? Those were the days. Things were simple and most things could be managed on a spreadsheet: your financials, your customer/contact list, your company strategy, your to do list, etc.
Then you grew. Inevitably, you needed an ERP system to manage your accounting and supply chain. You also needed a CRM to help give visibility to all your customer connections and drive your sales pipeline. You set up an enterprise-wide calendar system. Your HR team needed a system to track employees, benefits and days off.
But, what about your company’s strategy and execution plans? Still using those spreadsheets?
It can be intimidating to sit down to a blank slate and begin working on your company’s first official KPI dashboard! Over the years, I’ve worked with hundreds of technology companies doing just that - beginning their KPI journey in Rhythm. So how do you get started?
First, it’s helpful to think of your business in terms of 4 key areas: Employees, Customers, Processes and Revenue. In order to have a clear high-level view of the health of your company, you should have visibility on all four areas. What can you measure to give you the proper insights on the health of your employees, customers, processes and revenue?
If you are still stuck, we’ve compiled the ultimate cheat! Below are some of the most common KPIs we’ve seen from technology companies using Rhythm for each of the 4 key areas:
The struggle is real. We’ve all been in meetings about our metrics that produce seemingly endless discussion about the numbers, with no real actions, outcomes or impact on results. CEOs list this as one of their top frustrations – all-talk-and-no-action meetings regarding their Key Performance Indicators.
So, how do you avoid the marathon hamster wheel and have an effective KPI discussion in your weekly team meeting? Teams who are really good at this have two things in common: a properly set up KPI dashboard and a great facilitator. Here are some patterns regarding both:
Mergers and Acquisitions are not for the faint of heart. Any CEO who has navigated those waters will tell you it is a tremendous challenge to blend cultures, systems, processes and teams successfully. The statistic is 70-90% of M&A's fail -- that's a scary number! Instead of focusing on that metric, let's talk about numbers we should be measuring around M&A.
Every M&A deal starts with an incredible amount of due diligence. Are the cultures and values compatible? Do the product lines and customer bases support each other? Do the numbers work and take us down a path of growth? Ultimately, if the deal goes through, benefits have been seen by both parties. Now, it's up to the newly-merged company to both preserve the current value of the organization and meet growth projections. It's a delicate balance.
"Everybody has a plan until they get punched in the mouth." - Mike Tyson
I've never met a CEO who expected his or her team and their plan to fail. People are optimists, for the most part, and most CEOs have faith in their teams to succeed. After all, the CEO hired the team, came up with the plan and work with the team every day to achieve the plan. Yet inevitably, many plans do fail. Why is that and what is it costing you?
Revenue is a great example as it's the lifeblood of any organization. It funds your growth, pays your people, enables you to deliver great products and serve your clients. What happens when revenue goals are missed? Can you not fund R&D to develop that great new product? Does the new piece of equipment that you need to purchase go on hold? Do you have to lay people off or stop providing stellar service to your clients? Are your investors ready to pull out? Scary things can happen when plans are not delivered successfully and revenue goals are missed.