Performance should be tracked whether you’re self employed, a small business or non-profit owner with few employees, or a department within an organization. In this post, I’ll tell you why.
They provide objective information that can be used to make informed decisions, unlike subjective opinions which can vary widely among people. The objective information helps prevent purely emotional decisions.
They help you understand how your business functions, how its processes work, the problems your organization is having, and whether improvement attempts were effective.
Performance measures assist planning. They help you see how a change in one thing will affect other people, inputs processes, outputs, products, and services.
They help motivate individuals and promote teamwork. People naturally want to perform well and succeed. When people see that their efforts are leading them toward the goal, they become enthusiastic about reaching it and want to continue.
They create support for changes. If the numbers show a goal may not be met, people will be willing to take corrective action so they can head toward the goal again.
They reduce the chances of unpleasant surprises. Even if you understand some of the problems, you may not understand others, let alone be aware that other problems exist. Knowing what’s going on is vital for determining the solution.
They clarify responsibilities and objectives. Everyone knows what they’re supposed to accomplish. Each person can see how well they’re performing. They show who is accountable for what.
When a company’s performance measures match it’s plan, it’s members are more likely to work toward the same company goals. Without metrics, time and money may be lost to activities that, although produce something, don’t lead to progress.
If you’re self employed, or own a small to medium sized business, I would love to help you develop metrics that will foster success! You may contact me here.