Home > metrics, Small Business > Measurement Manifesto

Measurement Manifesto

“The things that get measured are the things that get done. Companies measure the stuff they care about.” – Mark Horstman

“That which is measured, improves.”

Measure everything.

There are 2 distinctive measurements you should use to capture and accurate picture of the performance of your business. The first and most common are lagging indicators. These are measurements of results and include examples such as: revenue, expenses, average days outstanding etc.

The second and far less measured type are leading indicators. These are generally measurements of activities and behaviours that should lead to successful outcomes. They might include such things as: number of cold calls per day/week, or days from date of sale to date of invoice.

Not only is it important to measure both leading and lagging indicators in order to ensure things get done, but it’s also important to ensure that we’re constantly improving.

Having a wide variety of good data is also going to ease the decision making process by removing a great deal of the uncertainty.

Measure everything.

Advertisements
Categories: metrics, Small Business Tags:
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: