The process of self- assessment for a business must also incorporate mistakes and failures.
It was Bill Gates who said “Your most unhappy customers are your greatest source of learning”. The same can be said for learning from employees.
The business owner who listens and tries to understand what its customers and employees are saying will be in a better position for evaluation and assessment. You can think of this as an operational assessment.
Finally for any process to be effective it must be structured around proper time frames. While financial review might take place monthly, customer relationship assessment should occur more frequently.
Sales assessment might be quarterly or longer depending on the sales cycle or the industry. If the self-assessment process is properly established, then as Miles Slater said “decisions will be able to be made and the more important decisions will take priority”.
In summary, businesses should:
· Perform monthly self-assessment by asking key questions after the month accounting close.
· Understand that past success is not a guarantee of future success.
· Establish a process of operational self-assessment where a business is reviewing past mistakes and failure with a goal of improvement.
· Establish the proper time frames for self-assessment whether daily, monthly or quarterly.