By Adam Shearing, associate director at Hazlewoods 

Now, more than ever, the need to plan ahead and be prepared for whatever comes your way is vital to successfully navigating the unchartered waters ahead.

A common stumbling block for businesses trying to reach the horizon and beyond is that they lack a tactical plan for achieving their goals, or struggle to communicate them effectively throughout the business.

The past two years, as well as more recent global events, have clearly demonstrated that anything can happen, and that businesses need to remain adaptable and be prepared for all eventualities. It is worth taking the time now to ensure your business is able to thrive in a changing economic climate.

Implementing effective key performance indicators (KPIs) can help make such goals a reality, as associate director Adam Shearing from Hazlewoods  explains below.

How to identify and set KPIs for my business

Step 1: Identify your high-level goals

Think about where you are now and where you want to be in the future. Express your aspiration using 'SMART' goals.

Step 2: Decide what KPIs to set

Identify the key factors that are required to achieve your goals and ask yourself, 'How can I measure each goal and make sure that it is attainable?' Your KPIs should then work backwards from each goal, establishing key milestones and guideposts along the way.

Step 3: Share your KPIs with your staff

It is crucial for all employees to be aware of and understand the business goals to ensure they know what they are working towards. Sharing KPIs will help employees to recognise how their individual input contributes to the overall goals of the business.

Step 4: Monitor and share progress

'Where performance is measured performance improves'. Results should be shared and examined for the lessons that can be learned. Through this process the focus of the individuals and teams can be brought in line with the business's goals. This step is critical to ensure your KPIs become a genuine guidepost for employees.

Step 5: Ensure any KPIs are reviewed and updated regularly

Businesses and markets change constantly and, where appropriate, your measures should too.

How to navigate uncharted waters

Setting out your KPIs and making a start is the ideal, however, it is never that straight forward.

In times like these, business owners should really home in on what is truly important to how their business operates. Identify which key products or services are essential to the success of your organisation and envision what would happen if they are harder to come by or are no longer available.

Once identified, scenario planning, alongside a solid, up to date business plan, is crucial, so you are able to put effective strategies in place to make sure that you are covered going forward. Should those key components stop functioning at any point, your plan should then be able to support you by losing perhaps just a few hours, rather than days, weeks, months or longer.

All of the above are vital for providing staff and management with direction. Running a business without a plan or monitoring key metrics is akin to setting sail on a ship without a rudder or a destination. Employ these things and make sure everyone knows where they are, where they are going and what role each person must play in ensuring a successful voyage.

Hazlewoods has created a business plan template should you need help getting started with the process. To request a free, no obligation copy, please email marketing@hazlewoods.co.uk.

For further advice regarding effective planning, please get in touch with Adam Shearing, by calling 01242 680000.