You can't manage what you can't measure
Management thinker Peter Drucker is often quoted as saying that "you can't manage what you can't measure."
My clients will often hear me say to them “if you can’t measure it you can’t improve it.”
There are a number of areas in your business that you need to be measuring and in each business some of these areas will be different.
Measure those activities or results that are important to successfully achieving your companies’ goals. Key performance indicators (KPIs) will help you define and measure your progress towards your goals.
Some of the areas that business, no matter what size, needs to measure, are:
- The number of sales required to meet growth goals
- Customer service & retention
- Income & revenue
- Employee satisfaction
- Health & safety eg the number of days lost to injury (time)
Let’s look at one of the most popular areas of business to measure, “the number of sales required to meet your growth goals.” You would want to know exactly how many qualified leads you need to generate those sales, and then define where the leads are going to come from. By clearly defining what results are required you will be able to make objective decisions and put systems in-place to measure your success in achieving your goal.
What are you doing to improve your business objectively?
Clarify your expectations, define your success, then measure and adjust to create a winning process.
It is also important to communicate your goals and objectives to your team. They will not be motivated to work towards the goals unless the know how they are doing.
Review your progress
With your systems in place you can tell which strategies are working and which aren’t. Make the changes to improve your goals and keep reviewing to ensure the KPI’s are met.
Do not forget to celebrate your success with all the those who have been part of the journey.