You manage what you measure
Thu, 14 February 2013
In your business, the risk of being ‘outcome focussed’ is high. In pursuit of immediate (perhaps even necessary) results, you run the risk of damaging the happiness of your client base and the sustainability of your business.
When setting KPIs, you need to ensure that necessary outcomes, such as sales figures, are balanced by measurements that look at source activity, such as client satisfaction surveys.
Looking at business growth through turnover is energising but it is only sustainable if the profits are growing with it.
Staff – especially when bonuses or other rewards are involved – will best manage those aspects of their job which are measured. The same is true of business owners. When we have limited time, we will dedicate ourselves to the measurements we are being checked against.
Ensure, in your business, that those measurements deliver the source activity that creates your sustainable outcomes.