episode B5.003 Use of Agilean Tools in Stage V

Introduction
Here we are in the last week of July and the first month of the 3rd Quarter is ending - how much closer are you to success?

If you have been with us all month, you know we have been railing against the politicians and bureaucrats for acting arbitrarily in response to the pandemic; and any illusion they are making data-based decisions should have been dispelled by now. This is not about a specific political party or group, it is about the arbitrary use of power at the expense of the most important global community - you.

People like us, Living the Life, employ 57% of the planet's population and yet are treated as the source of its problems. Not here, we celebrate the contribution you make to a better society and our focus is to improve your chances of success. 

This week we continue the new programming structure. We use a Balanced Scorecard to format our weekday shows: Finance (Monday) = Operations (Tuesday) + Sales (Customers) + People (Employees) with Fridays dedicated to Owners. Look at the week this way - Monday through Thursday is working IN the Present, Friday is working ON the Future.

Also, we just built a new community, our version of a Chamber of Commerce. Join Up and gain access to our Hosts and access our library of best practices.

Have a great business week.
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Show Objectives
Before you started Stage IV - Hockey Stick Growth there was a Growth Plan put into place. Its goal was to control growth by balancing marketing generated sales and production demands while managing cash flow. At times it was tricky and occasionally you found yourself in a cash/credit crunch but you made it. Now regardless whether you are selling the business or reinventing it, this analysis and its quick fixes are essential.

Key Issues - ​Owner/Manager Perspective:

1. Review marketing performance vs plan & identify gaps;
2. Review sales performance vs plan & identify gaps;
3. Review production performance vs plan & identify gaps;
4. Review financial performance vs plan & identify gaps;
5. Use root cause analysis to determine rationale for gaps

What You Need to Know

• Results from Marketing Plan - ROI
• Results from Sales Plan - percentage of Closed Deals, Time in Funnel
• Results from Capacity Plan - final percentage of maximum and target
• Results from Cash Flow Plan - adherence to budget

​What You Need to Do​

1. Compare Revenue, Margins, and Profitability to previous periods.
2. Build a Cause - Effect Model from Marketing, Sales, Capacity, and Financial Results.
3. Identify Gaps, if any,  in each area.
4. Conduct Root Cause Analysis on the Gap
5. Provide an Action Plan to close the Gaps.

Shows

• Previous: EPISODE B5.002: IMPLEMENTING OPERATIONS STAGE V PLAN - BECOMING LOWEST COST PRODUCER
• Next: EPISODE B5.004 Optimized Use of Materials