3 Core IndicatorsAugust 8, 2017
The 3 Core Indicators that will tell you how Your Business is going
OK, so I don’t need to tell you that there are certain things that tell you if the business is going well or poorly, but will you understand and be able to control all of them?
The first one I am sure every business owner up and down the UK, if not the world will certainly know what it feels like when money starts to get tighter. But how good a measure is it of how well your company is doing, and is it already too late if money has already started to get tight? I am sure if you look at companies like BHS and ICI Steel they would agree that by the time the bottom line started to show problems, it was too late. Nearly every company has measures in place to monitor fiscal indicators, as they act like an early-warning system for businesses.
Every company has system/process indicators, such as call targets, time taken to reaching a client’s targets, processing targets and so on. As an example; an industry secret in the UK is that GPs (General Practitioners – Doctors) have had a well known target of 10 minutes per patient for a long time. This is a good example of a system/process indicator, some would argue not a great measure for either the doctors or the patients but nevertheless it is a measure popped in place to assure the successful delivery of a service. What happens when any target isn’t met? Will the ensuing conversations be enough to get things back on track? let’s hope so!
A downside is that anyone who has ever been monitored against processes and systems might argue it is a very cold and ultimately misleading way of understanding how things are going, as we are clearly not robots and can’t meet targets 100% of the time. Companies such as Sports Direct have stretched this too far and clearly got it wrong. It is, however, essential to monitor and understand System/Process Indicators and Fiscal Indicators to be as on top of how well your company is doing as possible.
The final measure is Human Indicators.
Now, anyone from a change management background would confirm this is the most essential indicator as the frequency of basing change in company activity on system/process inefficiencies, or even worse, fiscal assumptions will usually result in a lot of money being spent on an inadequate and often unnecessary solution.
It is always the people in an organisation or its customers who really know how well things are going!
Getting that information out of people correctly and efficiently and creating consistent data is one of the most difficult and challenging activities that can face businesses.
We all know companies will do surveys, consultation exercises, one to ones, to name a few methods, but the success of any of these activities is dependent on a variety of factors. One company that got feedback right was Lululemon who managed to start eavesdropping on customers and writing anonymous staff suggestions on boards which were fed back to the head office daily and contributed to what was already a thriving company to experience 33% growth y/y.
Of course, at Soft Intelligence we have solutions to make it easier than ever to get feedback from staff and customers, not to mention our dedicated customer/staff engagement apps. We create regular statistical data allowing owners of companies to really understand how things are going and remedy any potential threats at the earliest opportunity.