You Business Rhythm
Every business has a particular rhythm or cadence and the wise leader is quick to figure these out, reinforce them and manage to them.
However, they aren’t all the same. Often, due to the rhythm of accounting practices and GAAP, many companies fall into a monthly, quarterly, or annual rhythm. Yet many businesses are actually more daily or weekly (or even hourly). It is essential to growth that you figure out the rhythm of your business and stick to it. Why? So you can track, measure and adjust in time to make an impact.
My company’s particular rhythm is weekly. Virtually everything that matters starts and ends within a week. A month, much less a quarter, is eons too long to wait for data or to make decisions and changes. When we drift to “big picture” and away from weekly activities and results, we get off course; unfortunately, it can be quite a while before we realize it.
Every metric that you need can be adjusted to work within your rhythm. Even monthly figures, like EBITDA, can be estimate very accurately every week or even every day if you know how to do it.
Granted some functions within a weekly company can only be managed monthly and vice versa. However, my point is to figure those rhythms out and manage to them. Don’t move the business to your preference or style; move your style to the business.
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