ExtraMileIssue9

You can identify your strengths by identifying the areas you excel in,
and then asking “why?” This is a step many companies miss. Knowing
that you excel at customer retention is great. Understanding why you
excel positions you to leverage those strengths in other areas.
If you don’t have many specific metrics, ask your leadership team,
“What are the things we do really well? What do our happiest
customers say about us?”
This is where the rubber really hits the road. If a company doesn’t
understand what makes it great, then they run the risk of damaging
their success.
Targets
Once your team has looked at where the company is today and what
your existing strengths are, it’s time to identify your targets. Every big
goal in your strategic plan can be broken down into smaller targets.
To identify them, look at your goals and look at where you are now.
Where are the gaps? What do you need to change about your business,
structure, capacity, etc., to meet your strategic goals? Do you need
to hire new people? What percentage increase in sales with existing
customers do you need? Or do you need a number of new customers?
Will your plan require new software or other investments?
Identify targets, not just for the sales or the fleet, but for any
department or function that may have an impact on the goals you’ve
identified in your plan
One Example:
XYZ outlined in their strategic plan that they want to double the size
of their fleet so they can take on more business and become a larger
carrier. They’ve realized that they may have put the cart before the
horse a bit. Luckily, they previously took a realistic look at where
they are now and at their strengths. It turns out their reputation with
current customers is so good, they’re sometimes asked to take on
additional loads. They also found that they haven’t specifically been
asking current long-term customers for more business. When they
look at capacity, a strength is their drivers are all very experienced.
Some even come from a tradition of truck driving. Could referrals or
“apprenticeships” be a source of new drivers for them?
Based on the above, XYZ identifies two targets they think will help
them reach their strategic goal:
1. Increase the amount of business they do with current
customers by an average of 15% within six months.
2. Hire two more experienced drivers within six months and
bring on two “apprentice drivers” within three months.
Now XYZ has some specific measurable targets they can aim for to
achieve the bigger goal.
Tactics & Metrics
A strategic plan lays out the overall goals and direction of the
organization. Implementation necessitates a more granular focus. In
addition to broad targets, it’s important to identify specific tactics
(who, what, when and how) for the plan, as well as metrics to help
ensure that progress is being made. For example, if a company has
outlined 12% revenue growth, this could be accomplished in multiple
ways. It’s up to the organization to determine who will do what
specific steps by when, and how to measure success.
To create your tactics and metrics, look at the targets you’ve identified,
and ask yourself these questions:
1. What are some of the necessary actions we need to take
to hit the target?
2. Who or what department will own it?
3. What’s the time frame? How else can we measure success
or progress?
4. What are the milestones or progress points along the way?
One Example:
In order to achieve the increase in business outlined, XYZ Trucking
knows they need more sales. XYZ hires a sales person, who calls some
new companies and who may also be tasked with growing existing
relationships.
But there’s a problem. They currently have more opportunity than
capacity. XYZ knows they need to hire additional new drivers and lease
or buy additional trucks. But they don’t have the cash flow to do that,
and what’s more - the margins are razor thin on the new business
recently brought in, and the new customers want to pay at 120 days.
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