Not too many businesses succeed without looking at how their operations perform. This may be a simple looking at the books at the end of the month to see whether there is any money left or not. But the businesses that really succeed, and as we here at Holt Marketing and Management Services believe in, those businesses that have nearly unlimited growth and amazing cash flow achieve this feat by REALLY measuring their businesses performance and acting upon what they learn.
The name of the game is metrics and measurements. Every action or process your business has should have a means to measure or gather some type of metrics data from it. Large companies do this all the time. The system that has grabbed a hold of big business is the Six Sigma quality process developed by Motorola in the 1980’s. The biggest company singing the praises of Six Sigma (aka metrics and measurements) is GE with a touted $12 billion in savings their first five years of use.* Well, you may not be able to get $12 billion but you can save a huge amount for your company by looking at your own results in everything your business does!
Think what it would be like to take your production data, for example, and realize that you could save money by making process efficiency changes and tracking the results to make sure you attain that goal. A 5% cost reduction or efficiency improvement should be worthwhile in any category of your business. What about 15%? What about more? The key is you need to gather accurate data, analyze, keep tracking, and make informed decisions on how to make changes.
The best way to track progress and data, especially if employees have any direct input and maybe even a benefit by seeing success, is by having a scorecard. Scorecards are the visual tracking elements that you put your results in and watch how the process and changes track. It’s a great visual tool to share progress and get others involved in reaching success.
If you have questions about how best to put together a metrics plan or a scorecard or how to make your business come to life by capturing process data and releasing the power it contains (something we call the Synergy Factor), contact us. We would be glad to discuss further any questions you have or ask how to order a copy of our veteran owner’s great book- The Synergy Factor.
*Appreciation to Discovery for GE Six Sigma facts- http://money.howstuffworks.com/six-sigma.htm