5 Must-Know Tips for Leveraging Metrics for Business Accountability and GrowthNov 01, 2023
Julia, is the founder and CEO of TechGenius, Inc. a tech startup specializing in AI solutions for small businesses. Founded five years ago, the company has experienced rapid growth, but recently it feels stuck or like it has “hit the ceiling”. Sales have slowed, employee morale is uneven, and despite having a promising future, there's a sense of overwhelm when it comes to serving customers. Julia frequently emphasizes the need for performance metrics, but when it comes to defining these metrics or measurables, she tends to be vague and inconsistent.
To understand how they can get back on the growth track, let's dive in into how they can use measurables effectively.
- Are they tracking measurables? TechGenius Inc. knows they need to improve sales but has no specific metrics or measurables in place. Their sales team isn’t “running on EOS” so they don’t have monthly metrics or measurables. TechGenius decides to set a goal for monthly sales growth, aiming for a 10% increase, to align with their stated goal of market expansion. This goal starts to give them greater insight into their sales numbers.
- Are they tracking the right measurable? TechGenius is tracking website visits but hasn't asked if this metric effectively measures sales conversion. They IDS with their leadership team and discuss if this number truly reflects sales success. With feedback from their team they realize that tracking conversion rates is a better measurable and start tracking that measurable instead.
- Are the measurables, in fact, measurable? TechGenius aims to "become a market leader" but has no timeline or specific measures. After taking time out to reflect on their goals they decide to make them S.M.A.R.T (Specific, Measurable, Attainable, Relevant, and Timebound). They set a S.M.A.R.T. goal to capture 20% of market share in two years, tracked week over week and start to take action towards improving that number.
- Are the measurables reviewed consistently? TechGenius set measurable goals last year but hasn't reviewed them since, despite dramatic shifts in their market. They decide to review and update this data on a weekly basis and review them during their weekly Level 10 Meeting to make sure they still align with company goals and market conditions.
- Are the measurables driving process accountability? TechGenius has dozens and dozens of business processes but doesn’t really know if their team is using them. They realize that attaching a measurable to one or more key steps in each process is a secret weapon to getting their core processes “Followed By All.” As TechGiant determines the appropriate measurable and adds it to their weekly scorecard results the company starts to see their processes being used more consistently.
The Power of Consistency
Final thought, the power of measurables lies not just in setting them but in consistently reviewing, analyzing, and discussing them when they are off-track. When we observe and discuss the trends, we realize this data can consistently guide our organization toward its goals.
By applying these tips,TechGenius Inc. effectively used its newfound love for measurables to foster accountability, team work, and guide the company toward achieving its objectives.
When we focus on capturing and assigning measurables in our business it’s like drawing up team plays for a football or basketball game. When we do so, each team member can see how their efforts contribute to the win. When executed even partially well, we foster a sense of ownership, team work, and accountability as individuals strive to meet these targets.
Is there a place where your business is stuck or “hitting the ceiling”? If so, take a proactive step in defining S.M.A.R.T. measurables that align with your goals. Capture your thoughts or bring them to your leadership team for discussion. You’ll be glad you did! As you embark on your journey of elevating accountability, I wish you a productive week ahead, filled with clarity and measurable progress.
If you want to dive deeper, here's a link to the recent Scorecard webinar that I presented to a great group for the EOS® Strong In Six campaign.
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