The Value of Numbers
We use numbers to measure countless things in our lives.
Our accomplishments in school are measured in percentages that constitute grades. Time is measured in years, with markers like anniversaries and birthdays. Numbers help us measure if we’ve gained or lost weight, the type of mileage we get in our cars, or how fast we can run a mile.
We even use numbers in recipes, increasing or decreasing the amounts of certain ingredients to get the taste we want.
Businesses use numbers as well. The numbers guide us and give us a way to determine if what we are doing is working.
Today, let’s talk about creating your company’s scorecard.
A scorecard is a vital navigation instrument that helps you see how well your company, a department, or a satellite office is performing in relation to your company’s strategy.
Numbers work and should be used throughout your entire organization.
Here are eight reasons why everyone in your organization should have “a number.”
- Clarity. Numbers help employees understand what is expected of them and how they will be evaluated. Numbers become a communication tool between managers and employees and identify opportunities to improve performance before it’s too late.
- Accountability. When employees know what they are responsible for, they are more effective.
- Job satisfaction. The right people in the right seats enjoy being part of a culture that promotes success through numbers.
- Commitment. An employee who understands the number he/she is responsible for commits to achieving the goals.
- Competition. Measurable outcomes make it possible to raise the bar and promote friendly competition between departments that benefit all.
- Results. What gets measured gets done. Results benefit the entire organization, and numbers help get them there.
- Teamwork. Working together to achieve numbers promotes teamwork, a sense of belonging, and cooperation.
- Fast problem-solving. Numbers cut through the guesswork and opinions to identify problems early.
Not sure what to measure? Here are five ideas to get you started:
- Get new customers
- Get orders from existing customers
- Make sure customers are happy
- Serve those customers profitably
- Have cash
Creating a company scorecard that shows if we are achieving the outcomes we want takes time. And that effort is well worth it.
Need some help creating your company scorecard? That’s what I’m here for! Fill out the consult form below, and we can get started ironing out exactly how using numbers will help improve your business.