QUESTION OF THE DAY
WHAT FOUR THINGS DO YOU NEED TO MEASURE TO DRIVE YOUR BUSINESS?
4 - Volume, Value, Duration, and Quality
Because everything else can be calculated from those four
Looking at the graphic above - how do you structure, organize, and connect your data?
Think about how you assess your company’s performance. Do you know what is critical for measuring your progress and results? Have you decided on your key performance indicators (KPIs)?
Volume is a count of units. The units you decide to use depend on your business nature (people, the volume of calls, products, etc.).
Value usually corresponds to money in various formats (cost, bookings, income)and is often related to satisfaction. Perceived value is commonly translated to how much people are willing to pay.
Time is a measure of units such as hours, days, weeks, months, years, etc. Duration is the difference between two points in time, and the term “cycle time” is used when dealing with repetitive processes.
Quality is a perceived measure for meeting expectations.
Can you build all your other metrics from these four?
MEASURE WHAT YOU CAN, NOT WHAT YOU WISH TO
Standardize on what and how you measure across your business. It may take time upfront to agree and align everything. You will save valuable time and energy in the future, and it will become much easier to reconcile, analyze, and interpret data. You will have a higher likelihood of knowing what you are looking at.
Success is never solely down to creative ideas or unique products or services. The difference between success and failure is actually down to the fundamentals of how you operationalize your business. Check our guide to the best operational and transformation practices, that people love.
THE SECRETS OF RUNNING BUSINESS WITH EASE
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