Want to measure your business at a glance?

See all your critical measures in less then 30 seconds.

Just like the pilot who can see all his critical measures at a glance; in about 5-10 seconds he has enough information  to see what is happening and then importantly take immediate and well-informed decisions about what to do.

What measures should you like to see at a glance?

Before thinking that you need to measure everything important in your business, let’s look at what is critical.

The important financial measures for all profit-making companies are sales, expenses and profit, productivity and maybe debt. They may be expressed as actual numbers or as ratios. Ratios are useful as expenses and profit will go up with sales but maybe not proportionally.

These financial indicators are the lag indicators of a business. These are the results of your activities.  

However we also need to look at measuring the key activities which leads to sales and profit. These are called lead indicators. Measures of activities that lead to the result. Examples are: number of sales visits, number of hours worked, loss of customers, advertising activities.

Once you know the ratio of sales visits to sales (conversion ratio) then the most important indicator is the number of sales visits. You know that if you have a conversion rate of 30% and the sales lag time is 3 months then this becomes a very important activity to measure.

If the number of sales visits reduces by 30% its very likely I will my sales will reduce in 3 months time. Knowing that the lead activity is dropping means I can make a decision 3 months earlier than if you were just measuring the sales result.

You will need to record lead and lag indicators in your cockpit or dashboard so that you can make well-informed decisions quickly.

Ultimately we only need about 6-10 key indicators (and we mean key) to have a good grip on our businesses from day to day.

You too can have the pilot controls at your finger tips, YOUR PERFORMANCE DASHBOARD. Why not try Progressives’ Performance dashboard free of charge?

Action points - What to do next

If you are unsure on how to develop your key measure and the systems for recording them then contact us for free fresh ideas session with a specialist adviser... 

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