Determine annual revenue goals

Annual net profit target

Annual number of store expansions

Annual cost control target

Annual expense management goals

How to turn business goals into various specific goals so that every department can move in the same direction. What needs to be noted is: to achieve strategic goals, you must not just break down large operating figures and use addition and subtraction to press targets. Operating figures are only a result. What we really need to focus on is the driving factors that achieve the results, which should be formulated through the SMART principle.

Avoid Misunderstanding 1

Avoid Misunderstanding 2

Decomposition does not happen overnight, but a process of mutual consensus, which usually takes half a month to a month.

Point 1: Use the SMART principle to come up with a specific action plan, such as what measurable goals will be achieved in a certain aspect of each stage.

Point 2: The scope of discussion must be strictly controlled within the department. At the same time, superiors and subordinates must reach a consensus and avoid carrying out work in one fell swoop.

1. Financial budget meeting

2. Human resources budget meeting

Budget is a resource planning based on the logic of production ratio. The so-called production ratio, that is, efficiency, is specifically divided into financial efficiency (financial efficiency) and human resource efficiency (people efficiency), and it must be completed before mid-December.

Notes on incentives