| Michael Angier is the founder and CIO (Chief Inspiration Officer) of
SuccessNet based in
South Burlington, Vermont USA. He’s a father, husband, writer, speaker,
entrepreneur, coach and student. He's also the creator of The World Class
Business™ Conference. |
Every
enterprise has important numbers that should be monitored--and
they're not all financial.
If you operate a business, you're
required to maintain certain financial records in order to properly
report your income and pay taxes. But most of these financials are
too historic to really help you make good management decisions.
What's needed are good metrics
related to the most important things that affect our desired
outcomes. By tracking the right metrics we can affect the changes we
need to make in order to be successful.
You can't change what you don't
measure and understand.
Interestingly enough, the simple act
of measuring things seems to alter the numbers in the right
direction. What we focus on expands and if we focus on the right
things, we'll start to see those numbers change the way we'd like
them to.
Every business is different and it's
up to us to determine what needs measuring and how best to do it.
Try brainstorming about what activities could be measured and then
select those you think would be the most meaningful. If they prove
not to be so valuable, try some others.
In a small business, paying people
based on metrics rather than profits is usually much more effective.
If you buy a new Mercedes and it's a business expense, your
incentives based on profit sharing are adversely affected. But if
you base bonuses on agreed upon metrics the payoff and increased
performance for employees occurs sooner. And it's usually more fair.
 Even if you're not a business owner,
you can find the best metrics to monitor what you do in your job. In
doing so, you'll be able to track things better and make changes
that impact those numbers in a positive fashion. You can increase
your own productivity as well as that of your department and
everyone becomes more valuable.
Here's an acrostic to help remember
what good metrics can do for us:
| M |
-easure |
| E |
-ssentials |
| T |
-o |
| R |
-apidly |
| I |
-ncrease |
| C |
-larity |
| S |
-uccess |
Clarity leads to power and the right
metrics will gain that clarity for us.
Keep It Simple
Keep your metrics simple and easy to record and you'll do more
of it. I like to make a game out of it. The easier it is to do and
the more fun it is, the more likely we are to follow through with
this powerful process.
Programs like Excel and Access enable
us to easily chart and graph our numbers so they become more
meaningful and allow us to spot important trends.
You can even develop important
metrics for your personal goals. Create ways to track the action
steps needed to achieve your goals, and you'll achieve them more
easily and consistently. Monitor your income, outgo, net worth, your
exercise program, your diet, your weight--anything that moves you
toward your objectives.
Metrics work. Metrics matter. Metrics
will make a difference if you use them. Because you CAN change what
you measure and understand.
--End--
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