How to develop a scorecard?

Everyday business owners and career professionals are faced with making decisions. Some decision are easier, while others are a bit complicated. For complicated decision does one “go with their gut or feeling”? or is there a better, more reliable approach?

One reliable method is the use of “scorecards”. Scorecards are used to tabulate results to make an effective decision on the best solution (or course of action) when dealing with multiple decision factors.

Scorecards are very common in large organizations. However, recently implementing the scorecard methodology has become increasingly popular among small and mid-sized businesses. So, how does one assemble and effective scorecard?

The final scorecard product, in many organizations, looks like a table drawn on paper with many rows and columns. The number of rows and columns depend on the number of solutions one is deciding between as well as the number of decision factors.

Let us build a scorecard:

1. Start by writing down the names of the items you are deciding among, e.g. Company A, Company B, Company C.

2. Write down your decisions factors, e.g. Customer Service, Local, Public Company, etc.

3. Draw a table with rows and columns. The number of rows should be equal to the number of items you are deciding between (See #1)

4. The number of columns should be equal to the number of decision factors you are deciding between (See #2)

5. Once you have created your table you will need to add a weight (number) each decision factor i.e. how importance, from 1 to 10, do you place on each decision factor, e.g. Having good customer service for you may be 8, while having the company local is 10, etc.

6. After weighting the decision factors, you then tally the scores. In this example the highest score wins, and therefore your calculated decision should be to opt for the solution that has the highest score.

The scorecard method replaces the “gut feeling” approach and ensures a calculated and well though out decision process.

Economic recession worries got you down? Solution: Initiate

Recently all one sees and hears on media is “recession, recession, recession”. Now I am speaking in for the US Market, but there is also a global recession in the works.

Let’s just get to the point. Recession is upon us or coming soon. What does this mean for the entrepreneur or small business owner? Contrary to what you may think that recession is bad…this is a great time for your business. Look at the tremendous opportunity in the market place. Recession weeds out the wanna-be’s. The people who truly believe in their product and service will be the ones standing.

So how do you ensure your survival? The answer is very simple, which is that you must initiate and be proactive.

You must move away from waiting and hoping for business and start moving towards creating a need/desire for your product/service.

You can start to make calls everyday. Start with your existing customers. Call them or go visit them in person. Spend time with them. Improve on your existing relationship. Find out about their short-term and long-term needs. Ask them about their industry trends. Find ways to align your product/service inline with their needs. This will generate value and when the value surpasses the need, it turns into a “want”. -And once that happens all you have to do is to ink the deal.

Extend your approach to prospects as well. Make a proactive effort to make a new prospect appointment each week (every day would be ideal). Visit the prospect. Build a relationship. Find out about their needs and wants. Prior to the visit research their industry trend. Find a way to align your product/service with their needs in order to convert their need in to a “want” thereby heightening value of your product/service.

Do this everyday and often and you will insure your success in this economic recession. You can also match needs and wants of the various people in your network, i.e. match your clients with prospects and vise-a-verse.

Ever heard of the phrase “only the strong shall survive” or “survival of the fittest”. This is the time to show what you are made of. All the businesses that are waiting for stuff to happen will have a hard time to live through this phase. If you are proactive in imitating contacts then your chances will much better.

 Till next time!

Sal

www.salmankkhan.com

Year End House Keeping

As we reach to the end of the year, it is a good time to sit back and review your buiness efforts thus far and to log and collect all that scattered information in to oe place; in short gety organzized.

Pick a day of the week or an entire week to review your bank statements, collect them in one place. Start to prepare your profit and loss statement for your tax accountant, start to collect all those receipts, put your contacts in one place and get that desk organized.

This is not just an exercise in cleaning up but as you proceed to do this, you will get a better understanding of the correct picture of your business. You may also find some to do tasks that you had forgotten to do, and you may come across a business card or contact of a person that may be a potential client for the next year.

Therefore, take sometime and review your business and get organized so that you can start the new year with a clear direction.

Sal
http://www.salmankkhan.com

Day 6: Taking control

Welcome to Day 6. First, I am sorry for not updating the blog yesterday. I got busy with clients. Anyway, I am here now. Lets talk about “Taking Control”.

Lets put the word “Control” in context. For the purpose of this blog, taking control means actively identifying your goals and tasks and committing to the purpose of reaching your goals.

Taking control also means to dismiss external forces and make things happen. Do not blame others or find excuses. If things are not perfect, then find a solution. Remember that where there will there is a way.

If you start finding excuses for not doing your tasks or getting to your goals, it is no ones fault except your own. So take an active role, be positive and find a way.

Tune in next for the last stage, i.e. the importance of follow through.

Sal

Day 3: Identifying your goal(s)

Today, lets work on identifying our goals.

Assume that you have no restrictions of time and money, ask yourself what would you like to accomplish in your life and in your business/career?

Grab a notepad and pen, and write down everything that comes to your mind for the life and business/career category. Do not worry about the order of things, just keep writing. Take as much time as you need. Remember, if you had all the time and money in the world….what would you “really” like to accomplish? What goals would make you complete or feel better?

These should be your goals and not that of what others expect from you. Unless the goals come from within you, you will never be satisfied or completely motivated to reach the goals.

Once you have finished this exercise, start to number the goals in the order you would like to accomplish them. Again, do not worry about time or money. Just pick the one that you really would like to get done first.

Next we will work on how to focus on the selected goal.

Till next time….

Sal