by Asa Beavers
Does your business sometimes feel like an episode of American Idol? People "judging" your performance and the performance of your business using their feelings, experiences, and emotions, but no real scoring system. Good or bad - it's just their opinion. But is it accurate? Is your business as good or as bad as they say it is?
In business like in sports the score tells the real story. Keeping score is the most objective way to know if you are winning or losing. There are many ways to keep score in your business. These are called Key Performance Indicators (KPIs). Business owners who know their KPIs are able to measure many different aspects of their business and are better at predicting how their business will perform. But as well-intentioned as we may be about consistently measuring our business, for some it just doesn't always happen. We either ignore objective measurements or don't have systems in place to generate accurate measurements.
In order to begin to get our arms around the concept of scorekeeping, let's first consider three ways in which one can manage: 1) by observation, 2) by judgment, and 3) by measurement. There are three basic problems with management by observation: 1) it is almost always inaccurate, 2) it's usually not relevant to what's going on, and 3) it's generally negative.
Picture this scenario - you're the manager, feeling a bit of pressure and not having a particularly good day. You walk past the break room where you see two of your employees having what appears to be a social chat. You rudely interrupt them, showing immense displeasure, and direct them to get back to work. On the way back to your office you mumble to yourself under your breathe just how irritated you are with this younger generation who just don't appear to have much work ethic.
The reality of this situation was that one of the participants had just saved a major account from leaving the firm and he was sharing the story and offering some tips that the other person could use on one of her difficult accounts. This is a case where the manager observed behavior that was irrelevant, inaccurate and he drew a negative conclusion, despite the fact that these were considered two very productive employees.
Employees really do crave feedback, but not the kind exhibited by this manager who, based on a single observation, drew a negative conclusion and a rush to judgment. Management by measurement is the one management method that works because when employees know what is expected and how they will be measured then work becomes more enjoyable and participants have a way to win.
About the Author
Asa Beavers is a small business coach and consultant. He shares tips, techniques and strategies with smalll business owners to boost clarity and focus, create strategic action plans, and increase sales and profits. Visit his website at www.redlinebsg.com, email Asa at asa@redlinebsg.com, or call 919-367-0790.