In a very definite way, quarterly reporting for public companies is a measure of how well they can execute their strategic business plans. If we assume that no serious company plans to fail, then when companies miss Wall Street’s expectations is it because they failed to plan? Hard to say because every company has its own reasons for the speed bumps they inevitably hit along the way. Sometimes it’s supply chain interruptions, or large customers delaying orders, currency exchange rates or maybe the analysts got it wrong. But the reality is, there are companies that meet expectation more often than not and those companies have got a plan that they are executing.
Big or small, does your company have a strategic plan that is updated annually that takes into account current market trends, your competitive environment, your competitive position, multi-phased product development plans, company resource allocations, and a revenue and profit target, including stretch goals that are based on all of the above? If not then is it possible your company is not executing a strategic plan as much as hoping for success? Think about it this way – if your company does the same thing quarter after quarter and you keep struggling to meet revenue and/or profit projections then what are the expectations based on? As a former co-worker of mine used to prophetically say “nothing ever changes if everything stays the same”.
If you want to make some changes and start to execute a plan, contact Percepta. We can help your company ”hit the plan”.