Weekly Minute 56 - What You Measure You Manage

What you Measure You Manage and what You Manage Improves. This is a positive spin on the old adage 'if you don't measure it, you can't manage it'.

Often in Businesses we see this expression being reversed.  Without ‘Valued Information’ owners and managers are ‘flying blind’.  Take the client with $500,000 in the bank wanting to Franchise his business.  Having failed to get up-to-date financials for over three years, the end result was a huge Tax bill, the remainder in deposits held for work not started and a business sent into Receivership all because of no valued information.

One area that is often poorly measured and therefore badly managed is the area of Man Hours, Labour, Time; call it what you will.  The irony is that this is often the area of greatest expenditure.
Once a business starts to measure and manage this area of their business, productivity increases and the returns to the owner/s improve. Another expression to remember in relation to people’s performance is, “If you tell me how I will be measured, then I will show you how I will perform!”