When your company performance matches customer expectation, you get double match points—customer loyalty and multiple brand voices. You must know the business inside out to select relevant metrics and measure it right. In this article at iSixSigma, George Forrest why you should measure company performance the right way.
Measuring Company Performance
Metrics allow you to understand the company performance from various angles. You can compare old and new data to where it was and which direction it is headed. Metrics give you the correct picture by pointing out the flaws in operations, processes, and functions. They help you in the following ways:
- Help in strategy planning and channelizing company in the right direction
- Bring motivation to the company at large
- Aid in decision-making
- Improve company performance
- Scale as per the company needs
- Enhance engagement inside and outside company
Steps to Improve Company Performance
- Metrics Definition: To start measuring company performance, you can define the metrics using SMART model. Remember to the set goals that you can achieve.
- Convincing Senior Management and Workforce: To understand performance, you are going establish certain rules and processes. Make sure that the senior management is on the same page with you. Since these changes will be influencing employees, keep them in the loop as well. You can also increase the buy-in rate by incentivizing the milestone metrics.
- Data Collection: To get the real picture of the company performance, select the right data sources. Before setting the metrics, figure out if your processes and tools can provide the information. These indicators should give the same results, irrespective of who handles it. Establish standards so they collect data using the same protocols throughout the organization. Metrics should give honest results and that means anyone can be subject to questioning should there be a need.
- Focusing on Relevance: Organizations rush to buy expensive tools to measure company performance. It is easier to manage 5 useful metrics than 50 fancy ones. Leverage them to learn from another team’s progress. Having regular review meetings, knowledge sharing sessions, and discussing challenges are the best way to progress.
- Continuous Improvement: Since industry perspective changes based on market demands. Your company goals will change too and so should your metrics.
To view the original article in full, click on the following link: https://www.isixsigma.com/implementation/basics/importance-implementing-effective-metrics/