My colleague and I led a Kaizen workshop on metrics last week with a process manufacturing client. It is always interesting to brainstorm which metrics are the most relevant in tracking a company's success. They are NOT always the same. Companies are in different industries; they are different sizes; the profit drivers of the business are different; executives' focus is different.....and the list goes on.
However, every business should take a few minutes to strategize on metrics. Do you know what you are doing AND whether the metrics you are tracking are relevant to your success?
One tip to implement this week:
As we said in kicking off the metrics Kaizen, it can be a great place to start by taking stock. What are you tracking already? Why? Do you make decisions based on the metrics you track? If not, why not? In essence, take a pulse. Next, it can be quite valuable to gain feedback on what should be tracked. Have you asked the people talking with customers on a daily basis? How about those producing and shipping to your customers? I bet they will have something to say! Certainly, executives always have a wish list for metrics. Do you know which metrics are on the list?
Although you might be tempted to jump on the long list you are likely to generate in talking with all the stakeholders in the organization, don't do it! Make sure to understand the impact. Which will lead to decisions that will impact customers? Which are likely to drive profitability? Start with a small number. Prioritize and start using for decision-making before you move on.