Targets, targets, targets. It can sometimes feel like all of our time is spent ticking the right box rather than on improving business performance.
Just about every organisation has some form of performance measurement in place. So how can you go about setting performance measures that are a real contributor to business success?
Get clear about what you are trying to achieve
If you don’t know what your organisation, function or team is trying to achieve, how can you ever expect to put any useful form of worthwhile performance measurement in place? Every organisation large and small needs a clear set of goals that it is trying to achieve. The clearer you are about goals, the easier it is to set measures.
Know what matters
In running your business, function or team, there are lots of activities undertaken. While all activities have relevance, some are more critical than others. What are the critical activities in your organisation, function or team? Make a list of them and make sure there is consensus
Have a range of measures
Many organisations still rely too heavily on financial measures. While cash is an important day to day financial measure, the majority of financial measures are after the event. You need to have measures that tell you, pretty much real time what is going on. Aim for a mix of financial and non financial measures, lead (real time) and lag (post event) measures.
Don’t see it as task and finish
Organisations change, the industries and sectors in which you operate change, customer preferences change. Your performance measures need to reflect what is happening now, not what was happening 2 years ago. Make sure you periodically re-assess and review your measures.
Bottom Line – Performance measurement can either be an asset and part of your leadership success strategy or a time waster. What do you want it to be?
Since 2006 I’ve worked with in excess of 7,000 accountants and professionals in workshops, seminars and one to one helping them land their next jobs and become better leaders, presenters and business partners. Before that I spent 25 years in accountancy climbing the career ladder from Payments Clerk to FD. I’m a CIMA Fellow, Certified Professional Coach and Team Coach Facilitator.