Plotting Out Your Roadmap for Success
Create the Framework for Your 3-Year Highly Achievable Goal
In last week’s blog, I noted how many companies endure long periods of tepid growth before they stumble upon a formula that works – if that ever happens. Even worse - it’s not uncommon for many CEOs to tell their boards and companies the goals they’ve set without having a roadmap in place to actually achieve them.
The good news is if you take the time to develop your 3-Year Highly Achievable Goal – also known as your 3HAG - not only will you be able to provide clarity about what needs to happen to yourself and your team, but you will likely shorten your journey toward success.
Identify Your 3HAG
Before you can find success, you need a good roadmap, and that’s the point of a good 3HAG. To create the one that’s right for your business, I recommend using the framework Shannon Byrne Susko lays out in her book, 3HAG Way:
1. What is the end date of your fiscal year three years away?
- What do you want your top-line revenue to be on this date?
- How much cash in the bank do you want to have?
2. Calculate the number of “widgets” (i.e., products or services) your company needs to sell to achieve your revenue number and cash in the bank number.
- How many net new customers does this equate to?
- What is the total cumulative number of clients?
3. What is your 3 Year Highly Achievable Goal for your company?
- This statement should not include any numbers.
- If your statement is in draft form, that’s okay for now.
4. What are the 3-5 key capabilities or differentiating actions you need in place to deliver on steps 1-3 above?
- A rough draft is fine!
- This is the first step in developing your sustainable competitive advantage, a concept I will expand upon later this quarter.
5. What do you want to be known for in 3 years?
The Framework in Practice
I recently worked through this framework with one of my clients. In three years, their goal is to have revenues of $100 million and $5 million in cash in the bank. To achieve these fiscal goals, they determined they would need to do 5,000 deals between now and then.
Their 3 Year Highly Achievable Goal statement (with no numbers) is as follows:
“XXX will be the next generation _______ (purposely left blank) company in North America.”
To deliver on this statement, they determined that the four key differentiators they need to have in place should be:
- Recruiting and onboarding specialized talent
- Alignment of technology and sales capability
- Defining and owning their niche within the industry
In the interest of propriety, I’ve purposely removed specifics, including what they want to be known for in 3 years, so as not to give away key elements of their strategy. But the larger point remains: this process takes a lot of time, thoughtfulness, and reflection. However, if you’re tired of feeling stuck with no path in sight toward achieving your goals, I’ve found the return to be worth the initial effort.
If this framework seems like it could be of use to you in helping you plot a roadmap for your business toward success – or even if you don’t know where to begin - contact me today! I want to help get your company headed on the right track.