Performance indicators abound.
Some are objective and measurable. Others are subjective, emotive, and evocative.
Identifying, isolating, analysing, embracing, and implementing the limited number which can be appropriately accepted as key requires discipline and objectivity.
For start-up and established entities observable and measurable indicators can typically be grouped into three categories, being:
· Essential benchmarks
· Growth levers
· Power of customer-first
Appropriately determined and qualified benchmarks enable delegation of both authority and responsibility. Specific tolerance(variance) measures negate the need for ongoing micromanaging by senior executives. “Management By Exception” is a concept warmly applauded and typically embraced by people of all ranks. In such cases, leadership overviews and interventions are themselves exceptions.
At best, senior intrusions may centre on refining and redefining the benchmarks themselves, which are focused on individual rather than industry, groups and geographic clusters and performance records.
It is rare that all relevant competitors and substitutes have identified status, standings, and development stage presence.
AVOID THE MUNDANE
Essential benchmarks are distanced from typical month-on-month or year-on-year comparative analyses. Gross sales figures reveal little of meaning and substance. Sales increases can usually be accelerated and elevated by rampant price discounting. The real impact is on profits and sustainable financial viability.
Likewise, profits can be misleading. For example, a run-down in inventory levels and warehouse capacity can reflect immediately and extensively on short-term profits. Such instances project a false economy and skewed perspectives.
DYNAMIC REFLECTIVE, PROJECTIVE BENCHMARKS
Verifiable stock-turns, velocity, and complementary volume rates, along with sales/contract conversion ratios provide comprehensive overviews and insights on performance and “fit” in the marketplace.
Collectively, they can be and usually are catalysts for appropriate management strategic actions.
GROWTH LEVERS
The word and concept, growth is interesting. They can relate to absolute and relative measures or be vertical, horizontal, and multi-dimensional in nature. For some, growth can be, and is, applied to positive and the negative. Go figure.
Market share is not unidimensional. It can be quantified to an overall market, target segments, geographic spreads or, disturbingly reflect fragmentation – in its many guises.
Growth, advancement and spread can lead to exposure, vulnerability and both competitive and strategic sustainability.
Getting the right measure and balance is an art-form. Being right or wrong are binary and constant.
Identifying, isolating, analysing, formulating, and applying custom company/brand/product/service/applications contribute to competitive advantage. Benchmarks and levers will optimise performance, sustain viability and be fundamental in malleability.
Heightened sensitivity to the nature, applications, advantages, benefits and rewards of benchmarks, levers and corporate philosophies substantiates ongoing investment in such.
The true art is in the management and manipulation of chosen levers. Thus, the HOW and WHO outweighs the importance and effectiveness of WHAT.
CUSTOMER-FIRST
The terms “customer-driven” and “customer-first” have in recent times been overtaken and overwhelmed by new labels including customer obsession and customer regency.
Customers should always be first, second, last and absolute. They are the very reason for being for companies, products, applications, and brands.
Service excellence is founded on the principles of never saying no to a customer. An inability to satisfy and fulfil needs with one’s own offering does not preclude the opportunity and reality of suggesting and recommending alternatives, substitutes or reassessment of perceived and real needs and wants.
Compromise is never an acceptable option.
A laudable statement, culture, declaration, promise, and positioning base were for one department store in the US, Macys, a longer-term competitive advantage:
Satisfaction Guaranteed. Period.
There was simply no soft edge to those words and intent. Understanding, embracing, and applying the underlying brief of, and in such were integral to the recruitment and induction processes of all Macys people.
CONCLUDING WORDS
Winners are grinners. They are also magnets for customers, clients, and prospective team-members. Recruitment issues are typically quickly resolved.
The absolute best know, share, and declare their unique measures of success.
In times of turmoil, simple things are often the most effective in achieving cut-through.
Barry Urquhart
Marketing Focus
Business Strategist
M: 041 983 5555
E: Urquhart@marketingfocus.net.au