What Gets Measured, Gets Managed
There’s a saying in business, “What gets measured, gets managed.”
Winning companies track several metrics to gauge their performance and measure business success. ROI (return on investment), EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), average sales, website traffic, employee churn and average inventory are all key business indicators. Large retailers track same store sales, days of supply and stock to sales ratio. Public companies are required to publish quarterly results and business metrics are the tools they use to communicate the health of their business to regulators and investors.
Much like how an experienced pilot continuously views her instruments to better understand how and where her aircraft is operating, successful companies track their performance to better understand how and where to focus their attention.
Do you know how successful you are? Do you know where you need to focus your attention to improve your results? Do you track metrics?
In addition to some of the standard metrics listed above, as an Entrepreneur Architect, a few metrics you may also want to track are;
- the number of overall projects per year,
- average project budget amounts,
- proposals to projects ratio,
- time from proposal to project start, and
- time from project commencement to construction start.
Track whatever you think will improve your results. Review your metrics on a regular basis and view your business from 20,000 feet. You may be surprised with the results.
Question: How do you measure YOUR success? Do you track your performance? What metrics are YOU using?
Photo Credit: Shutterstock / Kenishirotie