Why You Must Determine Business Goals Before Establishing Controls

When business owners decide they want to improve their operations, their first instinct is often to start changing rules, buying software, or firing people. They try to establish controls before they even know what they are trying to achieve.

At Business Development Machine (BDM), the recommendations and implementation phase of our approach are based upon several basic principles. The most foundational of these principles is the order in which you build your interlocking closed-loop system.

Determine Goals

The first step is always to determine goals. Without objectives, you will never get where you want to go.

When you took the Entrepreneurial Plunge, you had a destination in mind—likely to make the money you want, work with who you want, and work when you want. But in Survival Mode, those goals are replaced by a residual process where profit is just whatever is left over. Before you can optimize, you must clearly define your Unique Value Proposition and establish exactly what "success" looks like for your company.

Establish Controls

Only after your goals are set can you establish controls. Without controls, you never know if you are heading in the right direction or getting any closer.

Controls are the standard operating procedures and statistical process analysis that allow you to benchmark your strategic resources to a 90% performance factor. They are the mechanisms that stop the hidden profit leaks draining 10%, 20%, or 30% of your gross revenue. But if you apply controls without a goal, you are just building a more efficient way to go nowhere.

The Journey of Change

The Throughput Process Journey is not just about business mechanics; it is deeply personal. That journey begins by clearly defining specific results in terms of income and quality of life that are sought by the partners and staff.

This is the WIIFM—"what's in it for me." When you determine your goals first, you give your team a compelling reason to embrace the culture of forgiveness and the tolerance for error required for growth. You stop letting business happen to you, and you start making business happen for you.

Take Control

Download The Purpose-Built Playbook today to discover how to set clear objectives and establish the controls needed to reach them.