March 21, 2019
ISSN# 1545-2646
Honest numbers don’t lie
So how is your “Telephone System” working? If you are confused by this question, then kindly refer to last weeks post on Performance through process and structure.
In business it goes without saying that to stay in business you need to be profitable. Simply stated, the bottom line needs to be black (positive $$$) rather than red (negative $$$). To make sure this happens you need to measure and manage your “Progress.” This is done by having metrics for the key performance indicators which govern the critical processes of how you do what you do. You not only need to define the measurables, but you MUST have a reliable and honest way to capture/collect the data, so it can be part of your ongoing analysis of progress.
I emphasize reliable and honest because you can make numbers do anything you want them to do with the right amount of tweaking. Reliable and honest practices are also built upon your cultural foundation. Getting back to your “Purpose” and the fundamentals of making “Promises” your measurement systems are no different than treating your relationships correctly. The integrity by which your interpersonal relationships exist will be equally the same to the technical or numbers relationships your finances take. If your people relationships are not solidly built upon core values and principles, then neither will your technical financial practices.
As you look at your Key Performance Indicators (KPI’s) and identify what and how you need to measure these elements, you must tie them back to your vison/passion and the strategies of the goals and objectives laid out previously. Each of these steps MUST pass through the filters of your defined cultural expectations. By having progress points with measurables you can, on a continuous basis, evaluate how well your systems, process and procedures are performing. Are they contributing as planned? If yes, how can they be improved. If not, then what is causing the inconsistency. As was discussed in the planning process, with no plan then you are guessing at the level of progress you are at during any given point in time. By having the metric in place for your plans you have the ability to make better and more timely decisions both when things are going well and when new data requires a change in the original plan.
The progress performance points are your accountability road map. As you achieve points along the success journey you can take additional steps forward in your growth. When progress is derailed then you need an effective and timely way to analyze the impact, so alternative action steps can be moved into place quickly. These measurables can help govern when additional resources are required and that once specific objectives are attained then next steps can be taken to advance the organization toward its vision. This helps control expenses and unmanaged growth.
This week, are you measuring your KPI’s? Do you have KPI’s and if you do, are they aligned with your vision? Not having or having the wrong KPI’s are about the same. Having the wrong ones is actually a bit costlier because you are spending resources to manage the wrong things.
Give JKL Associates a call to help align your KPI’s with your Purpose, Vision and Core Values.
Questions or comments – email us at partners@jklassociates.com or call our Offices – MI at (313) 527-7945 FL at (407) 984-7246
Our Purpose – To build Cultures, Businesses, People, and Relationships with a Purpose based Passion, so that all can engage their talents for greatest contribution in whatever endeavor they seek. A life where a “Promise” means something!