What gets measured gets done
If it’s not part of your KPIs it’s probably not worth measuring. Most of us have heard the phrase ‘what measures gets done’. Sounds simple right? But when it comes to measuring what matters, it gets a bit tricker.
There are many organisations that aren’t clear on what they should be measuring. An easy way to address this is by using my KPI scorecard – see the breakdown below.
Alignment to strategy
Ensure the metrics being measured align with your organisation’s strategy. For example, if you’re measuring organic traffic to your website but your strategy is all about driving leads via performance advertising, then this should be your first focus. Every KPI should have a measurable lead indicator. Sure, you can measure outside of this, but put your KPI measurements first and ensure they are adequately resourced before looking at anything else.
Set targets
For each of the key metrics, set targets that are a stretch by achievable. These targets should align to a financial year; end of year target and monthly profile to deliver the end of year metric.
Look at your baseline for last fin year and then consider the environment you’re operating in now and what kind of % increase you think can realistically be achieved. Talk to the relevant experts in the business and ask them to help form a plausible growth scenario.
Regular measurement
When selecting what data outputs you’ll be measuring, get picky.
There should be no more than 20 key metrics that a business reviews and measures each week. For metrics that aren’t performing; a detailed plan should be prepared for the next month to get the metric back on track.
Refresh your metrics
Sticking to the same strategy all year isn’t always realistic. The beauty of measuring strategic outcomes each month allows for real time business decisions. This informed angle, means you can confidently pivot when necessary. If this is the case, update your metrics to align with these changes. And don’t forget to clearly document these changes and communicate them to the wider team. Especially those who are managing measurement.
Top Tip
It’s important to note; while financial metrics are critical, non-financial metrics are also key drivers, working to align the overall vision and values of the organisation.
Stop your reporting
Once you’ve sorted your KPI scorecard, it’s time to take a step back. Most organisations have so much reporting that it doesn’t get reviewed or given the attention needed to make it valuable. This is a common problem and can also make the task of analysing data end up in the ‘too hard basket’.
So stop. Now that you have a clear idea of what you should be focussing on, everything else is just clutter. Put in place one weekly dashboard of the top 20 metrics that align to the business objectives. Provide performance and commentary for how each of the metrics are tracking. If you have a clear view on these, you’re much better off than measuring more but not reporting accurately.
Need a starting point?
Whiteark can help. We have a network of experts with practical experience implementing metrics measurements that matter to organisations.
Whether it’s advice or hands-on assistance, the Whiteark team are your go-to for valuable data analysis. Contact whiteark@whiteark.com.au or call +61 459 826 221 to discuss.
