3 Steps to Measure Business Performance
Imagine driving your car across the country without a dashboard in front of you. How would you know when you were going to run out of gas or if your engine was about to overheat? I know this sounds ridiculous, yet so many businesses do this every single day. They don’t have a dashboard in front of them to monitor and measure how their business is performing. It’s really no different than if they were running their business wearing a blindfold.
3 Steps to start Measuring Business Performance:
- Determine What Needs to Be Measured. What information is critical for you to make important decisions, and to let you know if you are making improvements?
- Determine Where to Find the Information to Measure. A majority of these indicators can be pulled from your financial statements, you might have to be creative and establish your own methods for tracking the rest of the information. What’s important is that they are tracked consistently over time.
- Schedule Time For Reviewing and Analyzing What You Measured. Set-up time for reviewing your measurements on a reoccurring basis. By scheduling these appointments in advance, you will be able to develop the habit to always stay up to date and current.
Measuring puts you in control of your business! Don’t forget to look for next week’s tip on Accountability, we will provide more strategies you can implement immediately.