Monday, July 7, 2008

Drowning in Data?

Are you like so many companies that measure just about everything possible from number of pencils bought to number of customers served?

The questions I get from so many companies are, "What do I need to measure?" "Which metrics go on our scorecard?"

We see many clients tracking hundreds of measures, with each department tracking 20-30 measures each.

The question then becomes, "What are the metrics that matter?"

We believe the metrics that matter to your organization depends on YOUR desired outcome. Is your desired outcome, revenue, growth, profit, safety or quality?

You then must also look at what your strategic goals are to make that outcome happen. So, if revenue is your outcome, what are you doing to drive revenue?

You have to work backwards from your outcome. Most of the time we see clients picking metrics FIRST, based on the latest trends, books and benchmarks.

This approach will not give you the metrics that matter to your organization because you did not start with your own outcome and your strategies.

Customization is key when choosing size does not fit all.

How have you decided what to measure in your organizations? Please comment below!

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