Measure What Matters
What I’m Thinking About: Numbers Don’t Lie
The Small Business Association reports that 30% of new businesses fail during the first 2 years, 50% during the first 5 years and 66% during the first 10. (Investopedia). These frightening measurements echo the maxim “Fail to plan, plan to fail.”
As a business choreographer, I help business leaders plan for success. Key to success is understanding the essential business elements that combine to create scalable, sustainable business. It seems like common sense to focus on and measure areas that are basic to business success. But what are the areas that matter most?
To plan for success, concentrate on 5 key areas: profitability, employee engagement, customer engagement, operational excellence, and marketing/sales.
Why You Might Be Thinking About It: Numbers Matter
Most businesses have the same core competencies. By making sure you focus consistently on these 5 areas, you increase your chances of business success:
Profitability: Use resources to generate revenue in excess of expenses.
Employee Engagement: Hire, train, and retain top quality team members.
Customer Engagement: Deliver a positive customer experience.
Operational Excellence: Provide top-quality products and service.
Marketing and Sales: Product/service promotion and sales.
Why It's Worth Thinking About: Size Matters
Now you know the 5 elements in the success equation, start measuring performance against them. Here’s an example of measuring core competencies:
Profitability: Complete the fiscal year with a 10% increase in profitability.
Employee Engagement: Retain 85% of our top performers this fiscal year.
Customer Engagement: Increase customer base by 15% by the third quarter.
Operational Excellence: Release the next product feature during the second quarter.
Marketing and Sales: Increase on-line sales by 20% by the end of the third quarter.
When you assign goals and track them, you’re measuring what matters.
Ready to measure what matters? The Sandbox Group is ready to help.