Numbers (and the magic of measuring the right thing)
Recently I’ve been enjoying some blog posts by Seth Godin and this one got me really thinking (Read the full article here).
As business consultants, Voice of Reason Consulting advises our clients to make every effort to understand what specific numbers and metrics truly drive their business. We call these metrics Key Performance Indicators or KPI’s. These KPI’s are the drivers that propel the business to scale up to the next level. Based on our own experience, we believe that a business owner on the path to becoming a CEO needs to review their Company’s KPI’s regularly and continuously. Examples of KPI’s might include: how many prospects are in one’s sales pipeline; what is the probability of business to be closed based on a forecasting legend with specific criteria; what are the utilization percentages of technician or lawyer hours over the course of a week or month? The business does not need many KPI’s, just the right ones – and of course finding the few good right ones is indeed the challenge! However, we also know that when we find the right KPI’s, good things happen!!