Wednesday, July 30, 2008

It is Time to Measure what Drives the Business

With the recent layoffs, inflation, and economic indicators it is easy to see that we are operating in a very different business environment. Because this "slowdown" has lasted for longer than we have expected, businesses have more and more revenue pressures as the months go by.

With pressure on the top line, the bottom line is scrutinized even more. So, it is important to know what IMPACTS the top and bottom line and how. So for example, if you know that customer loyalty is driving your profits, and that retaining people drives customer loyalty, you then can focus on retention instead of training.

Another example might be in the HR area. Talent is on everyone's mind these days even in these uncertain times. We all know when the economy turns around, so will the supply and demand of talented people. What are the workforce planning models that HR can create now, that will assist managers when they have staffing issues in 18-24 months?

With resources being stretched like a rubber band, and economic measures swinging up and down, it is time to determine what drives your revenue and what measures you should be focusing on.

1 comment:

Brent Churchwell, Strategist said...

Given that HR and operational budgets are continually squeezed in this age, managers can no longer hide from investing necessary time to engage their workforce through coaching, performance management and career planning. This enables retention, results and customer loyalty (products aside, and if service is valued).