By Ken Ingram
I found the opening song from the movie ‘Rent’ thought provoking. Five hundred, twenty-five thousands, six hundred minutes; how do you measure a year in your life? What if we were to rephrase the question to make it applicable to a business; How do you measure a year of success?
The question gave me food for thought and had me reflecting on the last 12 months and what was achieved during 2014. So many of us get lost in the day-to-day operational aspects of our business and forget about measuring and tracking the key performance indicators (KPI) that provide important life signs of how the business is doing and the trend.
The first question that must be that must be answered is what KPI’s should we measure? In addition, if measurements are already being tracked then the question that must be asked is are the right parameter being tracked? and is it possible to do a better job of measuring. In creating a balanced KPI score card it is important to be also aware of the measurement traps because too many current measurement systems are designed to meet internal needs and overlook the inside-out measurement.
Therefore consider the following measurements:
- To know what key elements are important to the customers? Ask the customer
- To know what are the needs of those serving the customer? Ask your team
- To know what the people producing your products or delivering your services need from you in order to achieve their own targets? Ask them
- To know how you are doing at supporting the needs of your managers? Ask them
Studies have shown that by working to satisfy customer needs and those of your employees your company will excel well beyond your competition. The first step in measuring a day, a week, or even a year in business is to have a clear understanding of what should be measured. By establishing and measuring those KPI’s that drive your business results, you will be better prepared to make the adjustments needed to have a gold medal financial year. In the end, it all boils down to one thing RESULTS. You get results by understanding the needs, then it is possible to use your key resources in the most effective manner.
Have a great five hundred twenty-five thousands, six thousand minutes in your business.
Do you have the audacity to be the master of your destiny?
Ken Ingram MQA, President TAC Montreal