January, 2009

One Year Ends, Another Begins...

It’s time to review your last year’s performance, then plan for a successful 2009.

By Tom Fife

The year has ended here at Fife Dream Island Lumber and we are very happy with the way it unfolded. We made lots of profit and very few mistakes. We retained all of our good people and got rid of all those poor performers. The profit margins are good, inventory is all accounted for, and our dunnage pile is non-existent. What a treat it is to have all the bases covered. We’re the best we can be!

If you own or work for Fife Dream Island Lumber, congratulations on being the only one in the country that can’t use any improvement, you are truly the exception to the rule!

If not, now is the perfect time to review the past year to see what we could have done better as well as a perfect time to teach and train for a successful year ahead. Often during our “busy season” we use the excuse that we don’t have the time for meetings to share information or seek improvement. We may have even made a promise to ourselves that when business slows down we will address those concerns that led to a less-than perfect year.

The time we spend on reviewing and being reviewed at year end enables us to formulate goals for the coming year. Is management sharing the goals with the team that’s supposed to achieve them? Is the vision for the coming year clearly stated and understood so everyone can share it, or are we going to go down the same road with the same procedures that garnered the same results from the year past?

When you review your team’s performance for the past year, have each member assess their role with an openness that brings truthful sharing. First, identify the challenges of the past year. Then, give yourself the edge: plan for training, education and growth. Share financial information to get everyone on the same page when planning for financial success.
It’s important also to review what went right, and to recognize and reward superior performance.

As a manager I used to sit down with each department in January or February and discuss the last year’s performance along with the coming year’s expectations and perceived needs. Each year, as I listened, I learned more about what was necessary for the success of our business, our customers, our operations and, most importantly, our people.

Weeks prior to the meetings, I issued a few questions to each department for them to mull over in preparation. I think it is important for them to ask themselves:

What did we do in the past year that we are proud of or we felt was really good?

Where do we see a need for further improvement?

What kind of resources do we need to improve—including equipment, training, communication and involvement?

What is on your wish list? That’s a list of what you would want if there were no dollar parameters. Explain why you want it and how it would benefit the overall bottom line profit or efficiency.

What do you think is the right number of personnel for your department and why?

What are your goals for the coming year?

What can I or management/ownership do to help you better this year?

This gathers the information that you will need to plan proactively for the coming year. It’s more important to be a good listener than anything else during the process. Once the information is gathered, it’s time to sit down with the owner or manager to assess changes for the coming year with the same sort of long range thinking that the departments have made. You may find that you are developing a super team while preparing for a banner year. A proactive and participatory analysis of your entire operation is the best way to ensure an even better New Year.

I can help. Just holler.

TOM FIFE is a 20-year veteran of the construction supply business and president of Unionville, Ind.-based Challenges Inc., a speaking, training and consulting firm. Seminar topics include employee motivation and retention, customer service, management skills and yard foreman skills. For additional information, call at 812.330.1640, e-mail tom@tomfife.com, or visit www.tomfife.com.