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Sunday, 19 January 2020 00:00

Importance of Business Reviews

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In Indian Manufacturing Companies, lot of follow-up is needed to get things done. You can’t just assume that if you have agreed with your team about certain actions, all of them will just happen. You also may not get information that the actions are not happening. When you eventually check with the team, you may have a surprise! 

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My experience is that this is prevalent in companies where the Business Systems are not well established, and the Teams are also less trained. In addition to this, in Indian Companies the growth is higher than what happens in Companies in Western world. So, there is something new happening frequently. 

 

I have seen many Indians who worked in Western Countries for a long time, struggle to get adjusted to the Indian environment where they just don’t get a grip on the situation. They suddenly have become less effective! 

 

Business Reviews

 

Business Reviews are a good tool that can help in getting things done in Indian Manufacturing Companies. 

 

What is a Business Review?

 

The informal meetings that happen in companies to discuss one specific topic cannot be called as Business Reviews. 

 

I would call it a Business Review if a Boss is reviewing the KPIs (Key Performance Indicators) of his team in a formal manner.

The Team should present the KPIs in a systematic manner showing the:

            

-       Status of KPI – typically with the help of a Graph.

-       Data to illustrate the details about the KPI.

-       Corrective action and Preventive Action if the target is not achieved.

 

Only if all these are presented, I would call it as a Business Review.  

 

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Description automatically generatedWhen you present all this, you are reviewing the Status of your KPIs on the basis of Data, understanding the current status and then you are communicating to your Boss about the Status in detail. 

 

This helps your Boss to understand the status of your KPIs and it helps him to understand your position on each of these KPIs. This is a formal Communication. Then, your Boss can add value as needed.

 

If these reviews are not there, the formal Communication is not there at all.

 

Managers keep following up with each other on a daily basis on various topics. A Production Manager is constantly talking to Purchase Manager for Materials and with Sales Manager about Dispatches. These are just follow-ups and cannot be considered as a Business Reviews. 

 

Who all should Review?

 

In most of the Indian Manufacturing Companies, the only Review that happens is by the Managing Director once in a month. 

 

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Description automatically generatedBut this is simply not enough. The Business Reviews should happen at all levels. A Production Manager should review his Team of Engineers in all shifts. The Production Manager, Quality Manager, Purchase Manager etc have to be reviewed by the Operations Head. 

 

A Regional Sales Manager should review his team of Executives. All the Regional Managers should be reviewed by the National Sales Head. 

 

When a Review happens at one level, people at that level are taking responsibility for their KPIs, review them and present them to their Bosses. This ensures that the Team takes responsibility for actions at their level. In the absence of these reviews all the Problems will get pushed to the meeting with the Managing Director. Then unconsciously everything gets pushed to the top. 

 

Absence of these Reviews is one single biggest cause for why everything gets pushed to the top in Indian Companies. 

 

 

 

How should a Business Review be conducted?

 

01.  Formal Presentation in Power point or Excel is a must. This ensures that the presenter prepares before the Review meeting. Everyone should present Graph, Data, CAPA (Corrective action and Preventive Action) wherever the targets are not achieved. 

02.  A screenshot of a computer

Description automatically generatedDeep Data: The Presentation should have lot of Data. Data only should speak about the status of the KPI. Not emotions. Managers should be encouraged to practice Data based Decision making.

03.  Communication tool: Business Review is a Communication tool and the Boss should use it as such. The Boss and subordinate should agree on the status of the KPI and what should be done to improve it. 

04.  Review Team or Review Individual? Is it better to have full team at the Review or should the Review be with individuals? It is preferable to conduct the meeting with the whole team. This is the occasion when everyone in the team listens to everyone else. They need to understand the problems of each other. If used well by the Leader, this is where the Team building can happen. 

05.  Don’t throw surprises: You should not throw surprises at your colleagues in these Review meetings. If there are any data that will surprise your colleagues or your Boss, it is better to talk to them before the meeting rather than throw a surprise at them in the meeting. 

06.  A picture containing table

Description automatically generatedDon’t get technical: These Business Reviews are Management reviews. One should avoid getting too deep into the Technical issues. There can be separate Technical reviews for those issues. If performance of Promotional schemes has to be reviewed, there can be separate reviews for this. If you club this with your KPI reviews, then you spend too much time on these topics, and you will lose the Top view of the Company/ Function’s performance. 

07.  Don’t make it unpleasant: Even if the results are not good, do not make the Business reviews unpleasant. If you make them too critical and unpleasant, then these reviews can produce negative effect. You have to take care that your team goes out with more Motivation than what they have come in with. You need to inspire your team to go beyond their normal potential to produce a wonderful result!

08.  No upward Delegation please: The Leaders should be aware of the upward delegation that can happen in these meetings. If there are problems that need to be solved, then the problems have to be with appropriate people. The Problems should not be taken over by the Boss. Boss can help the team to arrive at solutions. But, he need not take responsibility for the Solution. 

09.  Length of Review: The Business Reviews can get lengthy in the initial stages. But the length of review should not go beyond a point. Then it can become unpleasant. If there are too many problems that need to be solved, one should prioritize and take up the top 2 or 3 problems. One should not attempt solving everything in one Review. 

10.  Higher Purpose: The higher purpose of the Business Review is to help the team to work out a way in which the Targets for the KPIs can be achieved. The methodology for achieving the KPI Targets will be arrived at over a period of time. When you do that , the Business results can become more consistent. 

What should happen between two reviews?

 

Between two Business Reviews, follow up should happen on points agreed in the Review. The follow up should be done by the Boss and in some situations, you may have a Business Excellence coordinator who will do the follow up. The actions should happen between the reviews. Otherwise you may not have any results from your Reviews. 

 

The Teams and the Boss are required to do thorough preparation before the Review meeting. When a Team member prepares all the data for his/her KPIs and writes his/her CAPA, it means a proper review has already taken place. This is the most important aspect. Every Senior person should review his/her own KPIs formally. Then the Boss can add more value to the Subordinate’s learnings. 

 

Skip Level Reviews

A Boss should normally review the team that reports to him directly. But sometimes the Boss may decide to do Skip Level reviews. This is perfectly alright as long as he has taken his team in to confidence. 

 

Every Quarterly review can be with the entire team including skip level. 

 

How to Kill / Reduce the Business Reviews?

 

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Description automatically generatedWhen you start Business Reviews at all levels, the team may feel there are too many reviews. You should introduce Reviews only on the basis of need. If some results are not coming consistently, a Boss would see the need for Reviews. But the frequency of these Business Reviews should reduce over a period of time. 

 

As the Results become more consistent, the Company should put Standard Operating Procedures for the specific Activities and then reduce the Business Review frequency. 

 

Benefits of Business Reviews: Regular and Scientific Business Reviews should help you to ensure Business Results in a consistent manner. The motivation of the Team members can improve with this. 

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Srinivas Rao K

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