Monthly Performance Reviews aim to resolve variances in reporting.
Discrepancies between planned and actual performances get scrutinised, leading to decisive actions.
Consistent Metrics and KPIs
Every review should focus on a set of consistent metrics and Key Performance Indicators (KPIs) that matter most to the business.
This ensures clarity and helps in making accurate comparisons over time.
Review Past Actions
Before discussing the current month's performance, I revisit the action points from the previous review.
Assess their effectiveness and learn from any shortcomings.
Key Principles for Effective Monthly Performance Reviews
Monthly cycles are optimal because they offer a consistent view of financial health.
Ensure Right Participation
The monthly performance reviews need to be attended by key stakeholders.
These include the company's owners, CEO, and CFO.
Balance Discussion
Encourage open dialogue, challenge ideas, but also support problem-solving.
Identify Core Issues
I delve deep to understand the root causes of variances or problems.
I don't just rely on surface-level data.
Develop an Action Plan
Creating an effective action plan after the Monthly Performance Review ensures that the insights gathered from the review lead to tangible results.
