08 Nov Bilbeo 5 Essential Business Performance Measuring Tips
Most of the world’s greatest leaders in management thought insist that measuring the performance of your organization or business is essential for it to succeed. There are no qualms about this subject.
If you wish to improve company’s business performance or any other aspect, you must first measure it.
Today, fewer and fewer managers are struggling with the Idea that you must measure performance to manage it. The problem is that most still with how to use these measurement properly. These five Tips implemented correctly will guide you to improve how you do go about measuring your organization or company’s performance.
Tip 1: “set it and forget it” does not exist
Industry standard performance measures are simply a myth. They are not something you can simply go out and buy in the mall, nail into your business, and just sit comfortably on your chair breathing a sigh of relief that you’ve finished doing your performance measurements.
Performance measurements are a reflection of the things that really matter most, and the things that matter most are a clear reflection of what’s going on inside your business and its environment. And in case you haven’t noticed, it changes constantly.
Tip 2: Only measure what you’re going to do something about.
There is no reason to measure just because you can, just because you have always done so. Just because you’ve got the information, doesn’t mean you have anything to do about changing it. A much better idea is to Measure only the results you are going to work to improve, by working on the business, not just in it”.
Tip 3: Measure drivers, not just outcomes.
It’s always good to know how profitable your business is, or how well you’ve kept to a limited budget, or how happy your customers are. Yet, It’s at least as important to know what operational results are the most influential over these wanted outcomes. It’s those specific drivers that you can really do something about in order to get the outcomes you are aiming for. You can’t really influence outcomes directly. But you can find the drivers, and measure them too.
Tip 4: Measure what you can influence (not only what you can control).
The only thing we truly have control over is our thoughts and actions, but extraneous factors can often limit that control. If you only measure what you can control, you are measuring useless Data. Expand the way you thing regarding what you can influence, and
You’ll find yourself measuring much more meaningful results. Remember, your target doesn’t have to be 100% correct.
Tip 5: Measuring performance as way of life.
If you’ve been interested in implementing performance measurement in your organization or business, you’ve probably already discovered that it’s not all about numbers and data. Mostly it’s about understanding culture, a culture that is result oriented to: feedback, learning and continuous improvement. It’s not enough to just to read a few articles on the subject to use these tools and steps of performance measurement properly. It is highly recommended to contact professionals that will walk you step by step the process of identifying the correct KPI’s and implement a correct action plan.