Many companies operate with two simple rules; get as much money in as possible, and take as little money as possible out of the company in the form of expenditure. That’s fine, there’s nothing wrong with that blanket approach, but it can leave many mangers wondering how to best meet those targets.
That’s why many managers who undertake management training courses have realised there is so much more scope for focusing on key areas of productivity which feed the overall bigger picture. One answer lies in the science of measurement.
Once you’ve established your goals and objectives, it’s critically important to translate them into measurable standards, and that can apply to just about everything. Measuring, or metrics as it’s also known, can be used in all areas of your organisation.
You can decide that you want to implement and measure a minimum 98% high customer satisfaction system, a minimum 98% delivery on time system, a maximum 1% manufacturing defect system. The examples could be endless.
The key thing to remember is that by compartmentalising your activities into measurable levels of performance, and set out to meet or exceed them, the end result will always be increased revenue and lower costs in the long run.
If you can manage it, you can measure it.