What Drives Your Company

Posted April 22, 2008 in Finance, 2 Comments »

Photocase49a8sdxm8cz2

  1. Johnny's building his business.
  2. He doesn't keep track of how many customers come daily.
  3. He fails to improve.

BOO!

Wanna Improve?

Keep score.

Think baseball. Without keeping score/standings/records/leaders/yaddas:

  1. Baseball players couldn't strive to improve.
  2. Baseball team execs couldn't play the best lineups.
  3. Baseball would suck.

Bizo how?

Like baseball peeps, business execs fail to improve because they think:

  1. "I can just 'feel' how well we're doing!"
  2. "I already know who the best people are!"
  3. "I don't need to keep score!"

Yet, if you don't know objectively what really drives the performance of your company, you'll ruin its potential.

What Performance Drivers?

Performance drivers: Anything that helps you keep track of how well you do.

Ta-da!

For instance, those might include:

  • Widgets-built/person
  • Customer-visits/day
  • Revenues/week
  • Products-sold/seller
  • Completion-time/project

Think Katherine + Bobby

Peep this:

  1. Katherine builds 100 widgets/hour.
  2. Bobby builds 70 widgets/hour. But, he's a crazily charismatic schmoozer.

Without understanding objectively who drives better performance, you might be tempted to give Bobby a raise over Katherine.

Times that by one-kabillion...

...according to your employee count, and see how much lost productivity revenue you waste.

That is:

  1. You pay $X amount for less performance.
  2. That leaves you less money to buy more productivity.
  3. Result: Lost revenues.

BOO!

Baseball teams don't pour millions into charismatic dudes who bat .200.

Likewise, your business would destruct its potential if it doesn't understand who/what really drives the performance of your company.

Keep @#$% score.

If you enjoyed What Drives Your Company, get Trizle's popular new articles freshly sent to your inbox.


More Business Tips You Might Enjoy

  1. Why Motivational Posters Suck
  2. Why Doing Philanthropy Rocks
  3. What Separates Google From Other Companies?
  4. Why You Shouldn't Hire Superstars
  5. How To Completely Fail At Your Business (tip #1)

2 Comments on What Drives Your Company

TOLAXOR

Posted @ 08:53 AM on April 22, 2008

"Baseball teams don't pour millions into charismatic dudes who bat .200."

WELL, ACTUALLY, THEY KIND OF DO. THAT'S WHY THERE'S BEEN THIS WHOLE MOVEMENT TOWARDS STATISTICS FOR THE PAST 10 YEARS....


J.C. Payne

Posted @ 07:55 AM on April 23, 2008

So if you don't keep score in baseball, then the games would really last forever, and no one would have any idea what was going on.

I agree 103% with keeping score.


Comment on What Drives Your Company





Submit comment

About Trizle

Trizle helps your business rock the world.

Subscribe to Trizle


Subscribe

Get Trizle's Lil' Guide

Get Trizle's little guide to build your business. We filled the lil' guide with our best tips to build your thriving business. The lil' guide comes with a 100% satisfaction-guarantee.

 

Copyright © 2003-2008 Trizle. Contact us. Photos provided by Photocase


back  |  next