Results and accountability are two big buzz words in today's global market place. What results are you achieving? Who is accountable for achieving those business results? Are two of the more frequently asked questions from the boardroom to the loading dock to the classroom. Since organizations are in business to make money through various sources of revenue, one would think that management would have a business strategy in place to ensure results are consistently being managed and achieved. Yet, during the last 5 years, what I have learned is that many businesses from small business owners to mid size firms with revenues exceeding $20 million do not have an executable strategic plan. These businesses operate by the seat of the pants philosophy or what I affectionately call spray and pray. (Spray it on the wall or within the organization and hope it sticks or delivers results.) Imagine for a moment the cost of airline tickets if pilots could just begin to fly and not plan the best route? And, how many airplane collisions would potentially happen without written and filed flight plans? Some executives in management spend more time planning their vacations than they do they lives or their businesses. Measurable results begin with an executable and written strategic plan outlining and delegating who does what by when. Through written goals that embrace the W.H.Y. S.M.A.R.T. goal criteria, measurement and therefore accountability are integrated throughout the business culture. Some key areas to measure are: - Weekly and monthly department goals of sales, units sold, etc.
- Number of new clients
- Average sales cost
- Number of referrals leading to new clients
- Cost to acquire a client
- Cost to keep a client
- Sales to close ration
- Employees attendance and productivity
Each company should construct their own dashboard of key indicators that need to be watched on a daily, weekly and monthly basis. A business dashboard is very similar to a cars dashboard that monitors key systems within the vehicle allowing the car to perform at maximum levels. Additionally, dashboards provide the first glimpse of potential problems from a drop in sales to an increase in production costs. By having a positive attitude regarding measuring the results, the management team can increase the wins for their organization and even for themselves. As the old adage goes, Success breeds success. P.S. Read the previous article How to Improve the Management Wins for Winning Business Teams Part 7: Consistent Goal Achievement or read the complete e-book How to Improve the Management Team Wins for Winning More Business Through 7 Proven Strategies on our website. |
