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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