Discovering the Metrics
Ernie Neve, CPA
November 10, 2020
Last week, I shared some ideas with you guys about how easy it can be to begin creating management solutions in your business to help you recapture your free time.
Did you get the chance to do any of those last week?
I hope so, because the end result is simple – more time for you to do the work you want to be doing and less – sometimes far less – time chasing your tail or “doing” numbers.
This week, though, I want to share a next step based on that process. After all, once you’ve created a system, and maybe you realize it’s not perfect, how can you fix it?
Well, keep reading!
As a “numbers person” I have to live in the world of quantifying answers. The IRS doesn’t care if my clients “think” they’re profitable, they deal in the absolutes of numbers.
Numbers don’t lie, and that’s the attitude you must have when it comes to quantifying the results your innovations are generating. How do you know if your innovation works? Simple! Look at the statistics before the innovation, and look at them afterwards!
If you created a process to speed up the sales process, then you should see a higher number of new clients as you compare before and after.
On the other hand, you also need to look deeply into things. If you’re closing at a higher rate, then you need to ensure that other systems are negatively impacted. For example, when you sold a bunch more “new” clients, did you swamp your fulfillment team? Unintended consequences are also metrics you need to make sure to study, and, quite frankly, if you’re really making improvements, then your quantifying data shows you exactly the places that need innovation and creation, too.
It’s a “chicken and egg” challenge, but one that allows you and your business to constantly grow – and that’s the core of the entire process we’re outlining this month!
An easy way to continuously innovate within your company – and NOT get caught up in the constant game of “catch-up.”
So this week, take the time to look at that one thing you changed last week and really study on the changes you expected to see – and the changes you might not have expected, too. What are the metrics you’ll look at? What are the things that “should” change as a result of the processes you’re creating?
These will be the key to your success, and more importantly, they’ll be the reason that you and your company grow when others are struggling – or shrinking.
The secret, in my own humble opinion, lies in focusing on the fact that every business is going to change and being open to that change – and communicating and teaching your people how easily your company is going to be able to make those changes. When they see the business smoothly executing and navigating changes and creating solutions, they’ll not only respond favorably, they’ll be “on board’ with the innovations you’re making.