Episode 13: Effective Financial Management Is A Cycle
It’s a Cycle: Course Correct & Coach
It's a Cycle: Course Correct & Coach
We’ve measured, monitored, and analyzed.
The last piece of the cycle is course correction.
This is the step where you make some decisions based on your analysis.
When you have a bad number, course correction is about getting back on track. It’s about figuring out how not to do it again and how to get out of the hole. For a good number, course correction looks like: let’s do more of that. It’s figuring out how you got the good number and how to replicate it over and over again.
In the analysis step, we found out the root cause. In this step, we’re actually trying to fix the root cause. Here, we fix or amplify things to get back on track to achieving the results we want to achieve.
Remember: there’s no reason to continue to do something that doesn’t serve your business well or support you any longer. Whether it’s the way you’ve always done things or it’s a vanity thing, how successful can you be if you keep doing it? If it’s not returning anything and there’s no benefit for your business it’s probably time to stop, even if you’ve done it for a long time.
Another way you can implement course correction is through trial and error. Sometimes you don’t know the exact solution or the exact answer to why, but you can try different things to see what works. We all know that continuing to do the same thing and expecting a different result is the definition of insanity. So even if you don’t know the path to go down, experiment until you find it. Don’t get sucked into continuing to do things the same way that isn’t actually working.
After course correction comes coaching, the last step of the cycle. That’s the communication aspect of the cycle: understanding the course corrections and informing everybody. This is where you communicate about changes you’re making, and that can be scary to your team. Explain why you’re making the changes, what the benefits are, what they can expect from the change, etc. Everyone wants to be successful, so let people know how this will make them and the business more successful.
The other thing the coaching process does is encourage empowerment in your organization. That’s huge for engagement and creating a winning team. Bottom line, that’s what success looks like. It’s a winning team. The cycle is there to support all of it and to ensure that you have a winning team, which creates a winning business.
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A show for business owners who are tired of just working in the nuts and bolts of their businesses and ready to work on the business itself from a big-picture, growth-oriented, strategic perspective.