The new era needs leaders that can back their decisions with statistics. Your leadership experience has enabled you to trust your instincts, but today’s stakeholders need facts. In this article at Big Sky, April Resnick provides 5 ways leaders can weigh out their decision-making before implementing.
5 Decision-making Metrics for Leaders
To successfully leverage the decision-making metrics, leaders must identify the relevant ones and collect data to feed the tools. It is not easy to apply metrics to administrative and management activities but those enhance company processes and functions. Following are the five decision-making metrics for leaders:
- Time Management: Every company has internal and external procedures. From getting an intern onboard to responding to customer issues, you measure the time length of each of these tasks. By calculating the hours it took to traverse the full length of a process, you get a median timeline. This helps you focus on reducing the time taken for certain activities. It lessens the overall timeline in turn.
- Error Mapping: Leaders can reduce errors by simply measuring the number of errors or repairs and their repetition outline. Your company must have a positive culture of error mapping to allow you to identify and address red flags immediately. Once you understand what type of errors are occurring when and where you can create a pattern out of them. Leaders need to find out the root cause of the errors and eradicate them.
- Cost Evaluation: Though cost is one of the primary metrics that organizations calculate, it is purely for budgeting purpose. Leaders must, however, collate all the cost-related information regarding administrative and knowledge processes. To find out the actual culprits, categorize the costs of each process based on resource strength, timeline, infrastructure, and errors. You will be in a better position to make project-based decision-making, resource management, and process enhancements.
- Soft But Essential Values: Happy customers, engaged employees, and strategic thought leadership are crucial for any business to succeed but are hard to measure. As leaders cannot measure them directly, they must rely on metrics like retention rate and customer feedback. Be creative to find out how your company, team, or function is faring as regards to the soft values.
- ROI Calculation: Leaders must calculate ROI before launching a new program or processes. This metric helps to understand the time and cost you need to make the launch a success. However, you can measure ROI only when the program has generated initial profits. While the primary effort is to balance the production costs, several strive to be overtly profitable. Nonetheless, this decision-making metric can back your claim for more investment.
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