Tracking the performance of your plan is easy. The numbers can be tallied. The actions can be checked off for completion. The real problem with performance is not measurement but rather accountability. What do you do when the plan is not being fulfilled? Investigate the reasons for not hitting the targets carefully before you take action. Consider these questions:
- Is it normal statistical deviation? No one can accurately predict where your performance will fall on a projection chart. The plan may be off because of normal statistical deviation, or what is called the zig and zag. The issue is how far off you are from where you wanted to be. Is 5 percent deviation (i.e., a subjective percentage you set) acceptable? Can you live with 10 percent deviation? If the deviation is not in the end acceptable, you must go back into your plan to look at the data. Reexamine information such as sales projections, costs of doing business, and profit margins to find the source of plan failure. Make corrections accordingly. Remember, shortfalls are compounded. The further you get behind the further you get behind. The efforts to catch up expand exponentially.
- Is it a failure of the management team to implement? This is the most common cause of plan deviation. The teams not fulfilling promises made in the action plan. Once the planning session is over, business as usual prevails. The individual or team doesn’t follow through with commitments. The antidote for individual failure or noncompliance is to tie the results of the plan into your performance reward program. People have a tendency to do the things for which they are rewarded. Consistent failure to perform takes on a whole different meaning that begins with coaching, progresses to performance counseling, and finally ends with termination. The sooner you legitimately get rid of nonperforming management, the greater your chance of hitting your targets.