How to Make Priority Setting Work: A Follow-Up to Our Ideal Operating Cadence
Welcome back! Today, we’re diving into a crucial follow-up from our Ideal Operating Cadence podcast from February 23rd. In that episode, we outlined the optimal weekly, monthly, and quarterly meeting cadence for small to medium-sized businesses, integrating Key Performance Indicators (KPIs) and ROCs (Rocks of Cadence). If you missed it, I highly recommend checking it out for a comprehensive overview of meeting structures.
This post is all about making Rocks or priority-setting work effectively. It’s one of our most popular topics, rivaling our top podcast on delegation. So, let’s break down why we need Rocks and how to implement them successfully.
Why Do We Need Rocks?
The concept of Rocks comes from Stephen Covey’s Seven Habits of Highly Effective People. He uses a powerful metaphor: imagine a mason jar representing your time. If you fill it with sand first (the daily tasks and minor obligations), there’s no room for the big rocks (your most important priorities). However, if you put the big rocks in first, the sand will fill the spaces around them. This illustrates the importance of prioritizing the most significant tasks to ensure they are accomplished.
In Traction, a book by Gino Wickman, the idea of Rocks is further developed for scaling businesses. For businesses trying to move from $3 million to $10 million or from $40 million to $80 million, focusing on the top priorities is crucial. Rocks help businesses stay accountable and clear on their goals, preventing the overwhelm of too many tasks.
How to Make Rocks Work
1. Specificity and Measurement
A common pitfall with Rocks is their lack of specificity. Vague goals make it hard to track progress or learn from outcomes. Rocks should follow the SMART criteria:
- Specific: Clearly define the goal.
- Measurable: Include a way to measure success.
- Attainable: Ensure the goal is realistic.
- Relevant: Align the goal with broader business objectives.
- Time-bound: Set a deadline.
For example, instead of saying, “Improve cash flow,” specify, “Increase cash flow by collecting an additional $150,000 in revenue by the end of the quarter.”
2. Action Plans with What, Who, and When
Each Rock should have a detailed action plan. Identify:
- What: The specific actions needed.
- Who: The person responsible.
- When: The timeline for each action.
Examples from Different Industries
Let’s look at how different industries can apply Rocks:
Retail:
- Rock: Successfully open a new store by June 2024.
- Lagging Indicator: Achieve $X in sales in the first quarter post-launch.
- Leading Indicator: Secure 500,000 impressions through an email campaign.
- Action Plan: Assign a person to run the campaign, hire the store manager by a specific date, and complete store refurbishment.
Financial Services:
- Rock: Grow the business to meet 2024 revenue goals.
- Lagging Indicator: Hit the second-half revenue target.
- Leading Indicator: Number of deals closed or promotions executed.
- Action Plan: Set up a CRM system, send targeted mailers, and monitor sales funnel metrics.
Continuous Improvement
It’s essential to review and learn from each Rock. Ask questions like:
- Did we achieve our goal?
- What worked well, and what didn’t?
- How can we improve for next time?
By aligning your team around clear, measurable priorities and detailed action plans, you set your business on a path to scale effectively.