Goal-Setting and Strategies Are Key to Business Success; Keep a Check on Financial, Non-Financial Measures

Article excerpt

I understand performance managing my staff, but how do I do the same for my business?

A GOOD performance measurement framework tells the story of your business and helps you to understand your past, present and expected future performance. It focuses on non-financial as well as financial measures.

Metrics should include both lead and lag indicators. Lag indicators relate to your goals and the outcomes or results you achieve, while lead indi- cators relate to your strategies for achieving them and to your business operations. Metrics can be benchmarked against similar businesses, or over time to allow trend analysis.

Developing and using metrics is easier than you might think. A simple seven-step process will get you on the right track.

Define Your Business Objectives. Within the context of your personal goals, make a list of your business objectives - and your strategies to achieve them. Objectives might include sales levels, target profit margins, or success rates of signing up new customers. …