Your measurements are directly proportional with what you get. Therefore, make sure that you measure exactly what you are trying to get. It sounds like a clinch, but it is part of every business. The primary goal of your performance measurements is to reveal the special performances of your company, not to mention about comparing them to your objectives. Plus, such results are supposed to provide the sectors that might require some improvements in order to meet the set goals. While it might seem unusual, it is definitely a good idea to rely on so called “holistic” measurements. But what do they mean?
The concept of holistic health
Perform the analogy with someone who decides to sign up for a race, for instance. Rationally, before engaging into a fitness or body building program, you should consult a doctor. The human is a mixture of all kinds of complex processes. The same goes for your company. Is the doctor trying to measure everything? Definitely not. Instead, they look for the aspects that do matter, depending on your needs. Therefore, they double check the levels of cholesterol, your arterial tension, heart rate or body mass index. Their main purpose is to find out if the individual is ready for such a venture. If they are not, they might have to focus on particular areas in order to become eligible for the program. This is exactly what happens to a company too.
Try to assume that the athlete was told to lose some weight. They do follow the doctor’s advice, but they lose so much weight that they become “bloodless”. They can barely stand up, let alone the fitness program. On the same principle, if you tell your workers that the inventory has to drop down, it probably will. However, your customers might suffer from it. If you tell your customers that reducing the acquisition cost is the only thing that matters, you might be forced to expand the business due to the massive sales.
In conclusion, handling the performance measurements is more sophisticated than what it seems.
Avoid mixed and confusing messages
Years ago, I worked for a couple of Internet, TV and cable providers. I was a salesman on the field. It was a temporary job I had for some extra experience and fun, especially since my team was a pretty decent one. We were all given a lot of offers and facilities, only to hand them over to potential customers. We found the new offers to represent some excellent opportunities to boost our commissions.
Before I worked there, customers had to wait for around three weeks for the representatives to show up and perform the installation after signing the contract. When I worked there, the waiting time was minimized to a week. It looked like a great idea. People signed contracts like there was no tomorrow. Obviously, the complaints started showing up when the representatives failed to show up for the installation within the first week. Later on, the waiting time was increased to three months. I left this provider after about a month of working for it. It is useless to mention that I got plenty of calls from unhappy customers for months.
The reason behind these delays was obvious later on. The distribution team tried to save money on the transportation, so it only made one or two shipments a month. Later on, the demand was so high that the company run out of equipments.
Guidance tips in transmitting a positive message
Some research and planning will work wonders on the final results if you follow a few basic rules.
- Reconsider the direction your company is going to. Find out what you need to do in order to meet your goals. Therefore, pay attention to the the measures you need for a proper process administration.
- Ensure that your measures do not transmit conflicting messages. You have to make it obvious that you are trying to improve the performance and not the departmental complacency.