In last month’s blog, we acknowledged how many times we’ve heard agribusiness owners and leaders vent their frustrations about being constantly busy but never making much headway. It’s tough! We offered two strategies—tying business goals to behavior and being intentional about company culture—to stop walking aimlessly in circles so everyone gets on track and moves forward together.
This month, we’re sharing two more steps to help you achieve business success. (If you haven’t already read last month’s post, you may find it helpful to start there.)
Step 1: Build the structure to support the metrics
As we noted in the previous blog, the first step is to identify your goals and objectives so you’re clear about what business success looks like for you. Once the direction (or success) is defined, make sure the following three aspects of metrics are aligned and pointed in the right direction.
Metrics + organizational structure
Every team (and company) needs a point person to own, track, and communicate progress on each goal. If more than one role is responsible for a certain metric, clarify what part of the metric each role owns. Remember, “What doesn’t get measured doesn’t get done.”
Metrics + job descriptions
Create job descriptions that integrate both job responsibilities AND the metrics of the role. What behaviors/actions will positively impact the metric? Does this job posting clarify both the WHAT and the WHY of the role?
Metrics + decision-making authority
Organizational structure is also about decision-making authority. Clarify what decisions need to be made and by who. Correct misalignments as needed so individuals can make decisions that impact the metrics they’re responsible for.
Step 2: Align the processes, incentives, and people practices to the strategy and culture
The following three areas must be aligned to drive success.
- Ensure the right people can access data and information. A client wanted to increase the margin for the company. The location managers owned the responsibility of cost containment at their locations (how they impacted the overall company margin). Location managers approved overtime but were in the dark about OT data, so they couldn’t curb the costs. Once they had access to the relevant data, it was a straightforward fix.
- Ensure your incentives and rewards encourage desired behavior. Another client sought to reduce expenses, particularly from OT. They’d been working (unsuccessfully) to reduce OT for their CDL drivers. Our assessment found the company was incentivizing drivers based on miles driven, resulting in higher OT. Turns out the company was rewarding the exact behavior they were trying to eliminate.
- Ensure your people/HR processes support the team you want (and need). Once you define key behaviors related to metrics, values, and job responsibilities, align your people and HR processes with consistent behavioral-based interview questions, behavior-based performance reviews, and the appropriate team- and leadership development.
Alignment makes business (and life) easier
Before implementing the steps we’ve shared today, you must take the time to get specific—and strategic—about business goals. Clear goals create a solid foundation for you to make organizational and HR changes that ensure alignment across every aspect of your business. That, in turn, will inspire and empower your team to think and act in ways that benefit the whole company, today and into the future.
Have more questions about aligning your business for long-term success? People Spark Consulting can help. Email Erin to set up a time to discuss your business needs.