As another year wraps up and the dawning of a new year comes, it's a great time for business owners and managers to reflect on their performance for this past year. I realize many owners and managers just want to wash their hands and forget about the year, while others are celebrating success and have great momentum moving into 2006. Whatever your situation may be, making time for reflection is an essential exercise that must be completed and can provide a host of benefits.

There are several ways to get great insight for the challenges and successes you experienced during 2005. One great way (for those of you with employees) is to bring your team together for a “2006 Kickoff meeting.” A sample agenda of the meeting could include some of the following agenda items:

Recognition – Recognize and reward your team members for jobs well done, for work above and beyond the call of duty and for performance-based achievements. This accentuates the positive results delivered by your team and sets the tone to start the year off with great momentum and enthusiasm.

Review – Conduct a year in review. Provide an overview of your company's performance in key areas along with your perspective. Next, invite the team to share their insight on the past year. The ground rules should ensure that “brutally” honest and open feedback is wanted and that their opinions and perspectives really matter, as they will only make the company better in all areas. As the owner or manager, it's not your role to agree or disagree with the feedback, but merely to facilitate the discussion, encouraging open and honest dialogue. Given the right environment (and your team's confidence that their input will be seriously considered), you likely get some “robust” dialogue that will lead to great insight on you and your business.

Goal Setting – Involve your team in setting goals for each area of the business, including sales, operations and financial goals. Other goal areas could include training, certification, personal and team development and possible rewards for achievement of the goals to drive motivation and excitement.

Planning – Once you have established your goals for 2006, take the opportunity to create an action plan for achieving your goals. What are the strategies you'll need to implement in order to achieve your objectives? Allow your team to brainstorm strategies in all areas. At a minimum, strategies for the following areas should be assessed: Increasing leads and lead conversion ratios, increasing average dollar sale and the number of transactions per customer, growing gross and net profit margins, boosting productivity, increasing efficiency and raising customer satisfaction and loyalty. Your plan should also include key success factors and timelines that can be objectively measured. By going through this exercise, your team will get a much greater understanding of the state of the business and will more likely buy-in and become accountable for results.

Personal Reflection – With your planning meeting completed, you as the owner or manager are now armed with a load of ideas and strategies to improve the success of your business. Take the time to summarize your notes and review the feedback that was provided. It's also your responsibility to formalize your plan of action for the year and determine how to execute the plan to ensure maximum probability of its achievement. Also, consider how you will hold your team accountable for results? How will you hold yourself accountable to reach your desired goals? How will you ensure your team's input is carefully considered and incorporated into your overall game plan? These are essential questions that must be asked and answered.

For businesses without employees, some of the activities above can be completed with friends, family or other trusted advisors.

Regardless of how 2005 was for your business, a successful and prosperous 2006 awaits. It's your choice to make it become a reality. Taking the time to reflect and plan, both personally and with your team, can create the catalyst for a great year. Best wishes for your business to have a profitable and productive 2006!

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