What should you check in on for a Mid-Year Review? – Part 2

In Part 2 of this 2-Part Blog, I outline the critical quantitative areas to review at the half-year mark.

You will recall In Part 1 we reviewed the ‘Qualitative’ areas.

So now let’s look at the quantitative areas in conducting your mid-year review.

QUANTITATIVE AREAS TO COVER IN YOUR MID-YEAR REVIEW

Owners’ Meeting

Business Owners should schedule a meeting together either locally or remotely to conduct a mid-year review.

The quantitative factors to workshop and discuss prior to meeting with management and the wider team include:

  • Business financial performance against budget

  • Financial update – working capital, cashflow, debt & suppliers

  • Key metrics including revenue, gross margin, operating profit, sales mix & other

  • Supplier pricing changes (if applicable)

  • Pricing – products/services

  • Review of key projects (time & cost)

  • Business development activities – cost & ROI

  • Sales & marketing activities – new client revenue, lost revenue and potential new revenue

  • People – current payroll, cost reductions (departures), additional costs (new hires) and future costs (pending hires)

  • Review of business cases for new or emerging spending

This provides both a forum to workshop the business at the half-year point and prepare content for discussion with the management team/key people and the wider team.

Management

Meet with management team or key people to discuss the key areas above including:

  • Share and detail owner’s considerations

  • Feedback & needs analysis re funding

  • Set out the plan to share these half-year review findings with the broader team (and relevant external parties if applicable)

Half-Year Review – Team Meeting

In the Half-Year Review Team Meeting with the entire team, include the above quantitative areas with key people to present:

  • ‘State of Business Affairs’ summary covering the half-year to date in terms of financial performance (Owner/MD/GM to present)

  • Operational update on financial performance (GM/Operations Manager to present)

  • Key Project Review on financial costs & ROI (Project Champions)

  • Production/Service update on financial metrics (Production/Service Head)

  • Sales update on new client revenue, lost revenue and potential new revenue (Sales Manager)

  • Finance update (Finance Manager)

Individual Team Members

Direct Reports to discuss with individual team members in their 1-1:

  • Incentives/Bonuses or Profit-Share (if applicable)

Project Teams

Project Teams to meet and conduct a detailed half-year review of key projects.

Report quantitative insights to management/owners.

Sales & Marketing

Sales & marketing team members to meet and review:

  • Business development activities on cost & ROI

  • Marketing Budget for the half-year and run home to fin year end

Finance

Review finance re:

  • Detailed review of half-year Reporting Pack

  • Key Metrics – Detailed review

  • Cashflow – Detailed review

  • External Debt funding

  • Shareholder Dividends & Drawings

  • Incentives/Bonuses/Profit-Share (if applicable)

 

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