(Measure twice, cut once – old carpenter saying)
Business is dependent upon certain tenets to continue: maintaining, or better, growing is one. Shrinking is usually a bad sign – unless it references your cost of doing business. Knowing if a business is healthy requires metrics or measurement of some type. Financial input and output should be tracked, employee development, sales volumes, and other aspects depending upon your type of business.
Measuring progress is critical to understanding, but must be a balanced part of your business diet. All diets are best when balanced, and if you compare information about your business to a type of diet then you should make an effort to keep things balanced. If businesses focus too intently on one aspect, for instance short term earnings, the portion of effort applied to this facet of the business can become bloated in respect to the other aspects of the business. The health of the business is dependent upon this diet.
“When an institution becomes the sum of what it measures, it risks valuing only what it measures.”
Businesses usually develop rules around the metrics or measurements that they track. An employer has a responsibility to evaluate the rules that are created: to ask why the rule is important, what is the impact of the rule on cost, quality & customer service? As an employee, you can prudently assist in your organization’s effort to create a healthy business with a balanced diet or perspective of all business and organizational aspects whether tangibly measurable or not.
© 2013 Practical Business | Reasonable Expectations