A Business Reset is an opportunity to get clarity, focus and alignment within your business. But when should you reset your business, what is the best way to do it, and what is the best way to avoid it.
When should you reset your business
The pandemic forced many businesses to rethink their strategy and innovate their business model to deal with rapid change and uncertainty. However many scenarios exist where a business reset is required.
Survival mode – when a business is just trying to keep its head above water. Doing more of the same makes no sense. It’s time to question why you are in business, whether you should be in business, and if the business can be turned around for the better.
Unsustainable growth – when a business is experiencing rapid growth that is draining resources and profitability. Here the challenge is to find the economic sweet spot and focus resources on owning that market space and position.
Turbulence – when a business becomes successful but very set in its ways. Success can often breed arrogance, leading to myopic vision, missed opportunities and even disruption by new entrants. A business reset challenges mindsets and assumptions and looks for better ways to do business.
Key person absence – when an owner or leader loses interest, motivation or focus. Sometimes it can happen because of personal or family events. Other times it is the result of not having the skills or acumen to grow with the business. Either way, a business reset is required.
The best way to do it
A Business Reset is an opportunity to get clarity, focus and alignment within your business. It enables business owners and managers to:
- reflect on what is working well and what isn’t working well
- review performance, challenges, obstacles and roadblocks
- rethink strategies and business models for achieving goals
- recommit to the purpose and vision for the business
- reengage customers, employees and business partners
The best way to reset your business is to take your leadership team offsite to explore, share and agree on the way forward. Last week, I facilitated a one day Business Reset with a business owner and his leadership team to review and clarify the vision for the next five years and refocus goals and priorities for the next 12 months to regain traction and momentum. This will enable each team within the business to set quarterly objectives and key results to achieve 12 month goals.
The best way to avoid it
While it is highly beneficial, you can avoid the need for a business reset with a clearly thought out engagement plan that reinforces your business purpose, goals and priorities.
The engagement plan details that way that you will communicate and interact with key stakeholders. It often takes the form of a meeting structure to plan, enable or monitor business, team and individual performance.
The challenge with meetings is that they often lack focus, direction and outcomes, or fail to effectively engage participants. Meetings must have a purpose, deliver beneficial outcomes, be time well spent, and logically link to other meetings that are conducted.
To build clarity, focus and agility, I recommend a simple structure of meetings across the business:
- an annual retreat to set strategic direction, business priorities and KPI’s
- a quarterly plan to set team objectives and key results each quarter
- a monthly review to problem solve issues and plan the month ahead
- a weekly meetup to review progress and prioritise the week ahead
- a daily check-in to discuss the day ahead, any concerns or constraints
Together with annual individual performance reviews and monthly one-on-one feedback sessions, this level of engagement can eliminate the need for a Business Reset.