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Performance Metrics: Are You Keeping Track?

Written by Karen Bivand

What are you keeping track of to ensure that your company is reaching its potential?  Performance metrics can be a powerful tool to help guide your decision making within your organization.  If you’ve never even thought about performance metrics, then now is the perfect time to try it out.  Here are some tips to help you get started:

Figure Out What to Measure.

When you’re setting up performance metrics, the most important decision that you have to make is what to measure.  If you are measuring the wrong thing, your metrics will only serve as a distraction and could possibly point you in the wrong direction.  Focus on what is key to your organization’s success.  You want to make sure that your organization’s performance is aligned with its mission, vision and goals.  Most performance metrics focus on best practices, efficiency and critical processes.  These metrics are most effective and most useful when you are measuring specific and quantifiable outputs.

Find a Process that Works for Your Company.

When developing the process that you will use to measure your organization’s performance, you need to find one that meets your specific needs.  For an evaluation strategy to be successful, it must take your industry, your organizational culture and your company’s readiness for measuring performance into consideration.  If you try to do too much too quickly, your efforts will be doomed to fail.

Talk to Your Employees.

To get their buy-in, it’s important that you involve your employees in the decision-making process right from the beginning.  Have a meeting with them and ask what they think should be measured.  When you come up with a process, ask them for their feedback.  Make sure that your employees understand that it is the processes, not their performance, that you are evaluating.

Revise and Refine.

After you get feedback from your employees, re-examine your evaluation process to determine whether or not any changes need to be made.  Are your performance metrics meeting your needs?  Is the data accurate?  Are you measuring the right things?  Remember that the way you measure your performance needs to evolve in order to keep up with your organization’s growth.

Since you’ve invested so much of your time, effort and money into your business, you want to make sure that you’re achieving your desired results.  By measuring certain aspects of your organization’s performance you can allocate your resources in a way that will allow you to meet your goals.

 

 

Written by Karen Bivand
Featured image via shutterstock.com

 

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