OK… so in these pages before we’ve talked about Effective KPIs, the Balanced Scorecard, Leading and Lagging Indicators, SMART Goals, as well as many other aspects of measuring and managing performance. We were reminded by a regular listener to our podcast that these things are only useful if you’ve got some idea of how to get started in measuring the business. This week, join the Wily Manager guys for Metrics 101.
Monday’s Tip: There is no perfect measure – look at a variety of things. You should not have hundreds of measures, but you should have more than one, because rarely is a business simple enough that one measure will tell you the whole story.
Tuesday’s Tip: Don’t let your metrics take on a life of their own. If you’re spending more time measuring your work that you are doing your work, you are measuring the wrong way.
Wednesday’s Tip: Let your performance indicators change over time. You will learn more about your business once you begin to measure, and the business will change in time. Do not become so committed to a measure that you don’t allow it to change.
Thursday’s Tip:Focus on those things you control or significantly influence. There are all kinds of things you should be concerned about in business, but focus your metrics on those things you control or significantly influence.
Friday’s Tip: Connect your indicators to business goals, and ultimately strategy. Performance indicators should be linked to Key Result Areas (KRAs), which should roll up into goals, that ultimately contribute towards the strategy of the business. Make sure you have a clear line of sight for these things.