As we forge our 2016 business plans and solidify our monthly, quarterly, and annual goals, consider how you are going to measure results and what you are measuring.
The old saying “You can’t manage what you can’t measures” is very true, but remember, people will focus on what you choose to measure, so make sure you choose wisely.
Here are some simple tips when selecting measurements.
- Ensure the data is unambiguous and easily attainable. I have made the mistake of having measurements that are difficult to calculate and obtain. The results are always late and become less credible. Easy-to-obtain may trump a better measure.
- The fewer the measures the better. I find the simpler the better too. Granted, sometimes making things simple is hard. There is no right answer and it depends on what type of goal we are measuring (company, department, or individual). Less is more here.
- Make sure you’re appraising the correct company activity. Think about the most basic purpose of the process and see if the measure is reflecting that purpose.
- Present your measures as trended data The meaning will be much greater with trends and ratios. Since trend data is extremely valuable, try not to change the measurement definition frequently otherwise historical trends will be interrupted. We are just changing a measure with one of my clients to hopefully improve results. If you must change a measure, the sooner the better, so a new trend can be started.
Also see the this checklist of potential measures–both leading and lagging measures–which may help you consider the best measures as you solidify your 2016 goals and measurements.
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