Setting Up This Simple System Can Lead To Immediate Results In Your Small Business.
MAKING THE GRADE IN SCHOOL…We have 3 kids. My oldest daughter is in high-school; a “Straight A – homework done a week in advance”. My youngest son is still in elementary school, and as long as Phy-Ed is a subject, school is fun! My middle son is in his last year of Middle School.
After 2 years of great results, we find ourselves having to take a more proactive role of knowing and showing him his progress in relation to his overall goal: The “A” Honor Roll.
So, my husband and I have gotten into the habit of checking his grades every week online. Every subject has sub-headings of Quizzes/Tests, Projects, Daily Assignments, and Extra Credit. At any given time, we can look at each one of these subjects and know the overall grade and the breakdown score/percentage of each sub-heading. WE know, but more importantly, HE knows.
We have a poster board that includes each Subject, his Final Goal Grade, Current Weekly Grade, Current Weekly Grade by Percentage, and the Target Date (end of the Quarter). We go through these grades and scores weekly to see where improvements need to be made in order to make his overall goal.
MAKE THE GRADE IN BUSINESS…
As a business owner, you need to predict your issues before they become a crisis.
Set up a KPI System
Key Performance Indicators (KPI), provide an objective viewpoint of your company’s performance, relative to your business goals and to any other industry benchmarks.
Notice I said “objective”. (You can finally throw your pair of rose-colored glasses away.) The results need to be quantifiable because the numbers don’t lie. They will allow you to see the business as it really is so you can be ahead of the game, not behind it.
Reporting tools such as a “scorecard” or “dashboard” will help give you the snapshot you need when you need it. Make sure that as a team, these KPI’s are organized and presented in a meaningful way towards the organizational goal.
Is there a Universal KPI system? No! You need to track what is important to your business. From a Marketing prospective, some indicators may include: the number of leads, lead conversion rate, average sale/client, number of transactions/client. From a Manufacturing prospective, some indicators may include: # of units made, process time. Start out by keeping it simple, start with a few and add more over time.
Only the Responsible Will Survive.
If you don’t measure it, you can’t manage or improve it. Once you get your KPI’s in place and start tracking, you can know what area(s) to work on. Once you know what area to work on you will start making better informed decisions. When you start making better informed decisions, you will start increasing. And when you start increasing, you can tell Larry to cancel the Bake Sale.by