By Hugh Stewart
Once you have set targets for operational metrics, you will want to report and review them.
Who do you report and review with? Do not think that if you are a single owner/operator, that this is something you cannot do. And if you are the only person reviewing your operational metrics, you are doing your business a huge disservice.
If you have someone that helps you, such as a coach, or a mastermind group, include them in the process. Why include others if it is your business? They can give you a much-needed objective perspective to understanding your operational targets and hold you accountable for achieving what you set out.
Make sure to include your employees also. The people that you hired, if you have staffed well, have a vested interest in your success. Their paychecks and their reputations are at stake; they care about your results.
Sharing with them the operational metrics and what the daily/weekly/monthly results are is a way of making sure that they are absolutely aligned with the things that you care about. Every appropriate thing that you want to achieve deserves to have an incentive and be communicated back to each person that brings you value in your business.
Their success is your success. Depending on your corporate culture, it can also promote team camaraderie while inspiring competitive spirit.
This is something that I do in my check-cashing business. All of our staff knows exactly how much revenue they need to make in a certain day, every day. They know exactly how many customers they need to see, they know exactly how much volume they need to drive, and they know exactly how much cash they have to defend on every shift. And each metric is tied into their incentive compensation.
It is because they have that clear understanding, and a very clearly aligned goal, that we have been able to create the kind of service level that we have in our environment. That is how we grew 25 percent per year.
Hugh Stewart, founder and CEO of Confident Solutions Coach, has both a substantial education background and diverse entrepreneurial background. Stewart was not only a nuclear fuel designer, but he has created and operated more than 17 businesses in the past 10 years in industries such as money services, real estate, advertising, reinsurance consulting, and coaching. Stewart seeks to help business owners who are struggling or simply wish to move their business to the next level. You can reach him at firstname.lastname@example.org.
Originally published: Sep 12, 2011