Every day, whether or not we realize it, we are measuring things in order to make our lives better. From the length of our commutes to the size of our retirement plans to the amount of space left on our DVRs, we want to know where we stand and how to make it better.
As much as we might enjoy measuring things, sometimes we don’t act upon the results. We might step on the scale to measure our weight, see that we are 10 pounds heavier than we’d like, and then fail to do anything about it.
This failure to take action happens at work, too, and it can seriously impact productivity, sales, and profits. While it’s great that you are keeping your eye on business metrics, here’s how to turn that knowledge into profits:
Commit to taking action
This may sound elementary, but it’s the most important advice I give our clients. Taking action can be scary, as there is always the risk that a new strategy, program or project might not turn out well. However, taking risks can also lead to huge rewards, so weigh the pros and cons but commit to taking some sort of action.
Double check that you’re measuring KPIs
The business metrics you’re tracking should align with your KPIs (key performance indicators), starting with a macro view of your overall company:
- Where was the company six months, a year, five years ago?
- Where is it going?
- What numbers are improving, and which are slumping?
- What are your target numbers and timeline?
Continually monitor your metrics
Set up a standing appointment on your calendar to review key metrics and ensure your business is healthy, whether it’s monthly or quarterly. If you have the capability, set alerts in case a threshold is crossed so you can take immediate corrective action in between reviews.
Revise metrics from time to time
When you’re setting up monitoring tools, keep in mind that it’s not a one-and-done. As your company grows, you’ll need to revise what you’re measuring, as well as your target numbers. Likewise, stop measuring certain KPIs when they are no longer valid – or useful.
Put together an action roadmap
Taking action requires some advanced planning – let’s call it an action roadmap. The key is to know what actions to take when and to ensure that what you are measuring will support those actions.
For example, if you hit a certain level of quarter-over-quarter sales growth, that might be a signal to hire an additional salesperson. If this is not planned out ahead of time, you might end up behind the eight ball – and struggling to keep up with a growing pipeline of clients.
In a nutshell, that’s how to turn business metrics into profits. All you need to do is weigh the risk, take action, and trust that what you’re doing will yield fantastic results. Contact ZeroedIn to learn how we can help you take your metrics to the bank!