In terms of turnover management, I think companies in any industry are taking a very cautious attitude. But on the whole, it is easy for everyone to take it lightly when faced with a turnover that exceeds expectations. Especially when the turnover greatly exceeds the estimated amount, many companies will praise their employees: “Good job.”
However, I still reflect on myself when the turnover exceeds expectations.
For example, when setting up a new store, we will first investigate the turnover of nearby competitors and other information in accordance with the requirements of the exhibition store benchmark table, and then estimate the turnover of the new store, and make an estimated report. If the actual turnover greatly exceeds the estimated turnover, reaching 120% of the estimated amount, you must reflect: Why is there a 20% difference in the estimate? Did you miss which element of turnover at the beginning?
Maybe many people think that the result exceeds expectations. Is there anything wrong with this? In fact, it is very important to regard exceeding expectations as “failure”.
For an enterprise, turnover or profit is a very important value. The more accurate and precise the estimate, the more stable the operation will be. Nonetheless, if the actual figure still exceeds expectations by a large margin, it can only mean that the accuracy of the estimate is too low.
In a company I have a close relationship with, if the actual turnover reaches 120% of the estimated amount, it is said that the company will reduce the bonus. This shows how much they attach importance to the estimated report and the actual implementation of the results.
In addition, people will inevitably have a mentality that if performance exceeds expectations and can be appreciated, it is good to set the estimated amount lower at the beginning. But if the amount is always underestimated, so that the goal can be achieved every time, will this really allow employees or the organization to grow?
Even if you set a simpler goal, you may not be able to increase the rate of achievement of the goal. Maybe you can take it lightly, and on the contrary, even the simpler goal cannot be achieved.
For this reason, careful investigation must be made when estimating the figures. Whether underestimated or overestimated, one must self-reflection.
