If you define success the same way your customers do then you will have a competitive advantage.
Through understanding what is of value to your customers and creating carefully crafted measures around this you can drive your business forward.
Modern businesses are built on numbers. Many consultants have created an amazing array of Key Performance Indicators. There is the maxim – “What you can measure you can manage” or “If you can’t measure it, it’s not worth doing”. Yet this has missed what really matters in a business.
We do not believe in measuring for the sake of measuring.
Refining the metrics to be measuring really matters to your customers (which is really all that matters) requires creativity and insight. However with this though comes the benefit of being able to drive your business further. You have to understand what is of value to your customers first.
It is not the case of pulling some metrics off the shelf and implementing these. Rather it requires a real understanding of the business. There will be some internal metrics that are useful from a management perspective. But these need to be coupled with predictive indicators that will provide you the insight into where the future is.
It is not about measuring efficiency (anybody can do that). It is about understanding what is effective and driving the business with these insights. Yes, we do believe in killing the timesheet because in essence they measure the wrong things and create undesirable behaviors.
Profitability of a business is based on Intellectual capital x Price x Effectiveness.