Annual Review
From Entrepedia: The Entrepreneurship Wiki
This page is a stub!
Please contribute to Entrepedia by expanding its content.
For more information see contributing to Entrepedia and the information on editing pages.
Whilst it is probably not feasible to look forward more than three or so years, an annual review is useful in ensuring that the business maintains its focus and direction. This allows us to make adjustments to that direction to reflect changes in the market place and to draw up a realistic business plan for the next year.
Part of the review process should involve a SWOT analysis; it should also focus on laying out forward strategies by way of a strategic review. An annual review should also consider the current state or position of some of the central aspects of a venture and how to approach them in the coming year. A review of business activities under the following headings may be useful in confirming the direction of the business and any refinements necessary.
Contents |
Business Approach and Mission Statement
The annual review offers a chance to consider the existing image, culture, character of the venture and discuss possibilities and directions for growth/expansion. You may also want to examine current approaches to client or customer care, as well as any existing marketing strategies, and address possible refocusing in order to achieve the growth and company image that you have decided to aim for or create. It is also a chance to look into financial management methods, assess their effectiveness, and identify areas that need improvement.
Business Development
Consider your realistic objectives; this is the time at which you should be discussing the possibility of and issues involved with any geographic expansion. It is also the point at which you should be considering your shareholders’ expectations – both in the interim and longer term – and how you will be able to address those expectations now and in the future. If you are looking to diversify, then you will need to identify the markets into which you intend to expand.
Delivery of Service
You should be looking at the management of the delivery of service to the client, as well as the current level of client care within your enterprise, and discussing delegation, supervision, and the allocation of resources. Look at the levels of quality control that you have been maintaining, and review the results of any satisfaction surveys and complaints & follow up results that you have accumulated. Discuss how team work has been functioning and any effects that it has had on quality of service, and explore the difference between theoretical standards and working practices. Finally, identify any existing barriers to be addressed in the future.
General Management and HR
Review your existing management structure and make any required recommendations for improvement (perhaps in roles and responsibilities). This will also require a review of job descriptions – the roles and responsibilities of staff – from the top to the bottom of the organisation. You may need to assess the current composition of board and higher level management and make some changes. You may also need to address any issues in communication – up/down/sideways/external – in order to ensure that all communication runs smoothly within your venture and in your external communication.
With regards to your HR and Support Services, you will need to conduct a continuing review of issues such as work allocation, induction, training and development, internal mail and fax services, library and information, and systems in place for appraisal and the setting of objectives. At this time you may wish to consider any opportunities for out-sourcing, if appropriate, and you will most likely want to conduct a review of procedures, quality manuals, and staff handbooks. If you haven't already done so, you should discuss the need for the development or further development of IT support systems, including databases as appropriate, and review existing maintenance contracts.
Marketing and Business Development
During the annual review, discuss methods of raising awareness of your venture at all levels, as well as key marketing themes and the utilisation of the internet and other media to achieve this goal. Review your available resources to match sales and marketing activity and discuss possible future entertaining/seminar events. Look at the monitoring of marketing effort and the role of everyone in relation to the next generation of new business.
Financial
Review your annual turnover, and set realistic goals for annual growth as well as regular meetings to monitor performance against budget. Outline your profit level and margins, and discuss possible improvements to staff benefits. Review your approach to such topics as business development, people development, management, credit control, and processes.
Acquisition
There may come a time when you need to ask yourself and your team, "Is this a way forward?" In order to make the best answer regarding your venture you will need to do significant research into the benefits and drawbacks that an acquisition will pose to the venture overall, and by extension everyone involved, including the clients or customers.
Summary and Outcome
It is desirable that discussion on the various aspects of the business as shown above should result in a summary statement and identifiable general objectives going forward. These should then be refined into specific objectives for the year ahead, forming the framework for the Annual Business Plan. Other general objectives are then taken forward/reviewed in an appropriate timescale.
