You have probably heard that saying before – it has been attributed to many great business minds such as Peter Drucker and Tom Peters – and it refers to the fact that regular measuring and reporting keeps you focused on achieving what you want or need. It’s a sure-fire way of staying on track.
Every business has different needs, but here are 5 key areas that you should think about measuring and reporting on to help your bottom line:
- Cost of service. This is the simple calculation of the overall staffing and infrastructure costs divided by your total transactions. Does your service cost or cost per item measure up to the value you are providing?
- Outstanding debtors. Who owes you money? Do you need to outsource this task in order to get it collected?
- Sales pipeline. What are your actual sales figures for the current month and quarter, and how are you tracking against the forecast figure? How are you tracking against your forecast for the rest of the year?
- Customer satisfaction. Is your net promoter score (NPS) where it should be? What if anything do you need to do to fix it?
- Staff engagement. Are all of your team aligned, motivated and happy? Is anyone in the “danger zone” that you need to help in some way?
Whatever you choose to measure in your business, it is only effective if you action what you need to do in order to put any wrongs right.
Action: Schedule a time to get together with your key team members and decide what your key areas to be measured will be.