Part 1 of this article discussed the importance of starting now to define your 2013 plan—focused on a few key priorities. I would like to now take up how to make regular reviews of actual results against the plan part of your company’s regular routine.
FOCUS YOUR WEEKLY REVIEW
Your annual plan should include key company priorities mentioned above, and for each priority approximately five specific action items to achieve that priority. These action items should have delivery dates and be assigned to specific individuals on your management team. Regular review of the assigned action items greatly increases management alignment and accountability. A tool such as the Scoreboard that is part of the Inc. Navigator for Newport suite 
can be helpful in this regard. We recommend that our clients update their action item scoreboard before each management meeting, so the meeting time is not used for rote reporting. These meetings are a time to share ideas on what is working well, brainstorm problem solving ideas to remove bottlenecks , adjust action items, and celebrate successes.
The most important element of the weekly management meeting is to keep having them. Make everyone aware of the schedule, start on time, and do not let the meeting go more than one hour. These meetings should build momentum and alignment in your management team. If you stop having them, you will demoralize your team, especially your “A players” who are essential to success.
FOCUS YOUR CEO ROLE
To have the greatest impact on your company in 2013, you need to look at where you are spending your time. Generally, the CEO’s role is to set the vision for the company. The CEO should be thinking in a 3 – 5 year time horizon: keenly aware of the company’s competitive position, customer needs, new product opportunities, and external threats. The CEO should anticipate capital needs and build the company size and structure to address market opportunities. As much as possible, day to day operating issues should be delegated to individual managers. A focused annual plan, backed up by specific action items regularly reviewed, builds skills in your management team and provides peace of mind for the CEO to let go of day to day details.
In smaller companies, the CEO may maintain an operating role (often sales and/or product development) due to financial constraints or because he/she enjoys it or is very good at it.
After identifying the annual priorities and supporting action items, the CEO should count the number of action items assigned to him/her. Ideally, the CEO should “own” less than 20% of the action items. If this cannot be achieved in the first year, it should continue to be the goal. The CEO should have a management development plan or hiring plan to move all the action items off their plate. Until this is achieved, make sure the CEO is retaining his/her highest impact activities. Do not bury a world class sales person under a mountain of manufacturing or logistics details.
FOCUS YOUR DAILY SCHEDULE
Some time management advice is enduring, no matter what technology is available. In Think and Grow Rich (first published in 1927) Napoleon Hill tells the story of Ivy Lee who was doing some consulting work for Charles Schwab, the head of Bethlehem Steel. Schwab told Lee that the biggest problem he had was making his managers more effective in the use of their time. Lee said he would give him the solution to his problem and Schwab agreed to try the system for a few weeks and send Lee a check for what he thought the idea was worth.
Lee told Schwab that at the end of every day, his managers should write down their top six priorities for the following day. Then, they should put the list in the order of importance. The following day they should begin with the first task on the list and work on it until it was completed. Then do the second task on the list and repeat this until the end of the day. If they don’t finish they probably wouldn’t have finished anyway – when they realize this they know when to say no to a new task or give it to someone else. Any unfinished tasks should be put on the list for the following day. Schwab tried the system. In a couple of weeks, he sent Lee a check for $25,000, the equivalent of $250,000 today.
Ivy Lee gave great advice that successful managers still use today. But in 1927, Ivy Lee did not have to deal with managers who were sure they could multitask. In his recent book, Be Excellent at Anything, Tony Schwartz lays out the scientific evidence that demonstrates the human brain is not capable of multitasking. Humans can only process one item at a time. Under pressure, the brain will rapidly switch between items. This reduces efficiency and comprehension by 30% or more. The brain also naturally cycles in 90 minute periods. So to maximize productivity, Schwartz recommends executives reserve 90 minute blocks of “think time” to work on high priority items. If you can schedule more than 90 minute blocks, take a short break after 90 minutes and notice the productivity improvement from a brief walk or stretch break. Turn off your phone and e-mail alerts during “think time”.
The bottom line is that focusing on the truly important items pays huge dividends in corporate planning, senior management effectiveness, and personal productivity. Resolve to prioritize your activities for 2013. Start less. Finish more. Enjoy the rising profits and declining stress.
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Contact Catherine at catherine.cates@newportboardgroup.com
