The current form of the calendar was invented in 776 BC and I am sure a lot has changed in these last 2,792 years. Despite these changes, our “so-called” modern businesses have continued to use the same calendar for planning, discussions, and all critical decisions. Does it sound like we forgot to innovate something very important?
Here are 3 key major transformations needed to help your company win:
1. Don’t tell your employees that they have to wait for your annual cycle to finish before they get any detailed performance feedback or pay hike or bonus.
In the current lifestyle of Facebook and Twitter, employees (especially millennials) don’t have time to wait for 12 months. According to a survey by Forbes, 18% employees quit if they feel decision-making in the company is slow or if company’s future is not clear. According to another survey by ERE Media, 10% extremely talented employees don’t join companies if the hiring process is slow.
So when you ask your employees to wait for 1 year, what they hear is “It’s time to find a new job”. Think about it!
2. Don’t tell your customers that you have to meet your “annual” targets.
Customers do realize that you are too obsessed and desperate with “annual” targets and you will, therefore, offer discounted prices. According to research by Stanford, “deeper discounts build customer expectations that there are good deals to be found – and thus encourage more searching”. Eventually, your company loses a significant number of customers (and money) to attract customers who are waiting for you to offer those annual discounts again.
So when you tell your customers about your annual cycle, what they hear is “Let’s wait for your year-end desperate attempt to meet sales targets”. Think about it!
3. Don’t tell your shareholders that you will share your corporate performance report only at the end of the year.
Despite all the financial regulations, there are a lot of discretionary disclosures that a company can do. Instead of waiting for the annual year-end reporting, doing frequent, regular updates help keep shareholders interested in your company. Even though it may attract some criticism, it will also bring a lot of important feedback needed to fine-tune your business strategy.
So if you don’t update you shareholders regularly, what they think is “We need to look for alternative investment, before this black hole goes bust”. Think about it!
Find a new way to use the calendar soon or re-create these practices. If you don’t change soon enough, be ready to go extinct.
You can read more of my other posts at https://corporatecircus.wordpress.com/.