Developing a system of business metrics is the key to competitive advantage and sustained success.
Most companies utilize a variety of general metrics that allow upper-management to track overall financial performance of the business – compared to previous months, years and competitors. But when drilling down into these numbers for specific insight into business drivers, it’s important to have customized performance metrics that give management company-specific insight into ways their organization can improve (e.g. sales numbers via product, promotion, referral business, repeat customers, etc.). Work with your bookkeeper to identify the specific areas within your business that need special attention or stand the most room for growth.
Since the employees within the organization are ultimately responsible for the implementation of the business strategy, it is imperative to apply performance metrics to drive accountability at all levels. Keep in mind it’s key to have buy-in from those whose activities are being measured. Involve your top sales and marketing players when creating performance metrics for their departments.
Corporate goals and initiatives will inevitably shift over time. It’s important that the metrics used to track performance morph in unison. Consider your business a living creature and follow Darwin’s rule of natural selection – adapt or become obsolete. Your bookkeeper can play an important role and offer insight into the future success of your organization.