“Not knowing the numbers in your business will cause you more frustration that almost anything else.”
As a high end consultant, I should not be surprised by the lack of systems in place to monitor such core parts of a business. And in fairness to most business owners, the numbers that need tracking can change as the business grows. But…
There is, and should always be a core set of metrics you track at set periodical times (daily, weekly and monthly etc) that gives you the facts. These facts provide the insights you need to make intelligent adjustments and decisions. Without these core metrics, business wears a blindfold.
I often get asked, “Well, what do we track?” And whilst the answer does vary from business to business, and from department to department, you can always narrow your business down to a very small set of core numbers, ratios or results that tell you exactly how well your business is doing.
Here’s something you may not know… the bigger the business, the smaller the set of metrics. Why? Because when you have the ability to narrow your business down to a single core metric, you have the ultimate clarity.
That metric will drive your culture. Your sales and marketing efforts. Your strategy. Your back end service and follow up to customers. Your people and their productivity levels and bonus packages. It will drive everything because its core.
If you find yourself with “Numerical Frustration” where you have reports flying everywhere with no real focus – take a step back and find the most important single metric that guides the true success in your business. For profits. For staff and shareholders. And for the good of the customers you serve.
Because when you find the measurable difference that brings the greatest success to your business, you can’t help but grow.
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