If you wish you track about the progress of your business and to test whether your employed techniques have anything to do with the noticeable improvements, measure it!
Every other detail in our life needs to be measured. If we have set for ourselves a defined goal, whether in business or personal, we have to measure our development, otherwise, there is no way of telling whether the improvements we notice are relevant. Most businessmen neglect to include measuring in their business procedures and they pay for it dearly. To know whether you are practicing business performance measuring, read the following questions and evaluate your answers.
1. Are you keeping updated accounts?
You have to account your activities, time and again. Do not put it down in bulk or just twice a year. It is more productive if you could do it prompt and consistent.
2. Are you measuring your results?
Every after accounting your results on time, you have to make sure that you measure it for what it is. You need to gauge whatever there is to gauge.
3. Are you measuring the right data?
You have to know to identify which data that needs measuring. Otherwise you might end up wasting time and resources. You have to know which one goes where.
4. Are your measuring procedures extensive and comprehensive?
When you measure, make sure to include not only the internal but also the external factors that have contributing influence over the data that you are trying to measure.
5. Are you practising benchmarking?
When measuring is employed, it is practical that the data you have will be used for comparison for reasons of benchmarking. You may benchmark all the major consideration points so as to come up with a sound conclusion.
6. Are you using ratios for easy presentations?
Get into the habit of using ratios when you wish to present the results of your measuring procedure. When you use ratios, it is easy to interpret. A data expressed in ratio explains extensively without having to get into many intricate details.
7. Are you capable of interpreting the results?
Every item discussed above should be able to tell you much more about the anatomy of measuring and its results. More than anyone else, you should be able to understand the implications of the results so that you can fully utilize its uses.
8. Are you actively responding on the results?
The core reason why you need to measure your business performance is so that you could actively make relevant response to its implications. If the results are positive, your response should be to devise methods to maintain your operation in its current state. If the result is negative, you should be able to come up with ideas in how to rectify your current procedures so as to make the business way better.
Extend an effort to gauge your business performance. Take time to measure as to how you are fairing. Your business needs measuring from time to time.