Ho, ho, old me again!
Yes, old I am and thereby also experienced, I’ve been around, working for different companies, where the worst didn’t last long, while the best is still alive (in spite of my retirement, ho ho).
Last we talked about the lack of coordination between annual budgets and personal evaluation talks. Ok, here we go. A company is like a body, where every little detail contributes to the totality! All companies are built like houses – lots of bricks where one brick can’t be without the others in order to keep the house standing. Every little brick has importance for the house’s capacity for functioning
Now picture this! Two different CEO: s have gotten their budgets for next year. Now to the worst CEO: s way of handling this
He says to his employees:
– Hi folks, we’ve now received our budget for next year. We’ll make a 100-mil turnover and a profit of 12. Let’s go for it my friends. Coffee is now being served.
The best CEO says:
– In order to be capable to reach a 100-mil turnover and a profit of 12, we must do the following:
- First, we break down the annual budget into four quarters based on seasonal variations.
- Then we bring those figures to each and every department and its members, meaning that also, a truckdriver will know, that 350 deliveries have to be done this quarter.
By doing so, everyone within the company knows exactly what’s expected and this is also, the base for the quarterly evaluating talk.