The main idea behind the Business is ART process is a multi-step method that enables you to put your business on a path towards healthy growth by:
- Articulating what it is you want to accomplish through formal plans
- Revising those plans as you go along
- Tracking your progress by measuring key performance indicators
When it comes to following these three pillars, most businesses stumble on number three: tracking your progress.
While it seems like articulating a plan and revising it to be better are the most important steps in the process, they really fall flat if you don’t track your company’s performance. Too many businesses fail because they focus too much on strategy and not enough on analysis.
It really all comes down to one simple fact: it is impossible to formulate a proper strategy or adapt to change if you do not identify what is and isn’t working for your company.
Whether you are looking to track marketing metrics, sales or employee performance, you can do so effectively by:
Knowing What to Track
Ask yourself what you should be tracking and why? If you can answer both of these questions honestly, you’ve discovered your key performance indicators.
There are a ton of tools that can be used to track the almost infinite amount of data in the business world, and knowing which metrics are worth tracking really is half the battle. It’s up to you and your team to decide what needs to be improved in order to for your company to perform better.
Some metrics to consider tracking are website performance (traffic, leads generated, conversions, etc.), efficiency (how long it takes to complete a task) and sales numbers.
Measure More Often, or Don’t
Not all performance metrics are created equal, and some don’t need to be measured as frequently as others. Keeping too keen an eye on certain numbers and statistics is an easy way to waste time and resources, so it’s up to you to ascertain what to measure and how often.
Gauge the sensitivity of your metrics. How much can a certain number change in a month. If it fluctuates heavily, then you should be measuring it on monthly or even weekly basis. If you notice little to no change over several months, it’s definitely something that can be measured quarterly or even annually.
Other things to consider when choosing how often to measure a metric is how much it costs to track it, how accurate you need your measurements to be (measuring more frequently leads to increased accuracy) and how important it is to your company’s performance.
Keep Yourself on Track
Once you’ve gathered all the necessary information on performance metrics, you need to discuss how you can change your strategy in order to perform better.
A great way to stay on track is by organizing weekly or monthly meetings with your team. Here, you can discuss what is and isn’t working, and how you can improve as a business. Having employees track their time on projects can also go a long way in gauging the efficiency of the work that they are doing. It will also keep them focused on what they have to do, accountable for their performance, and will help you see where time is being spent inefficiently.
It’s always great to stay updated on new tools and best practices for measuring metrics. You can do that by signing up for the free newsletter or tuning in to the BIA talkshow. Additionally, Business is ART provides you with more than 50 pre-defined metrics to help get you thinking about which metrics are best for you.