One of the biggest challenges we see in companies is the diversity of answers we hear from leaders when trying to define what basic terms like pipeline, qualified lead (MQLs), or even ARR mean. The result of this misalignment is often highlighted by two outcomes:
1) strained relationships between leaders and even whole departments of the organization.
2) Poor decision making or sometimes no decision making, with leaders left in a type of conflict induced paralysis.
Business is just a bunch of relationships trying to work together to create value in a marketplace. Relationships that don’t define basic things the same will struggle immensely to find harmony and make effective decisions. The relationship becomes stressed, people are hurt, and the life of what made the relationship work originally, dies.
You must take the time and discipline to define what things mean as a business, and to communicate those definitions to the whole organization. And then, you must reinforce them with a strong process and effective use of them.
We recommend that you identify key terms you use in your business. Even the ones you think are super basic and easily understood - trust us on this one. Then sit as a team and define these terms, documenting it in an easily accessed, but difficult to edit document. This document should be treated like law.
Then, I would make it a regular practice to do a “fill the blank” type exercise in each leadership meeting and require participants to define a given term to test and re-affirm your definitions.
If you wouldn’t want your revenue treated casually, you likewise should not be casual in how you treat the meaning of things in your business. Revenue grows from the strong roots of product, process, people, and the nutrients that flow through the organization. The words you use and their definition should be treated like an essential micro nutrient of your business.
So go get things defined and help your business be healthier.
That’s our tip of the week. Have fun and go home happy.
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