The Value of Numbers
We measure countless things in our lives with numbers.
Our accomplishments in school are measured in percentages that constitute grades. Time is measured in years, and with anniversaries and birthdays. Numbers help us measure if we’ve gained or lost weight, the type of mileage we get on 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.
So it’s no surprise that numbers are also used in business. And when they are measured and monitored, they play a key role in success. They guide us, and give us a way to determine if what we are doing is working.
The Entrepreneurial Operating System™ uses numbers to measure success in the Data Component’s Company Scorecard. The Scorecard provides business owners with a snapshot of how your business is doing using 5-15 high level numbers each week.
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 detect problems 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 makes a commitment to achieve 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 get them there.
- Teamwork. Working together to achieve numbers promotes teamwork, a sense of belonging, and cooperation.
- Fast problem solving. As evidenced with a company Scorecard, numbers cut through the guesswork and opinions to identify problems early.
A Scorecard gives you a pulse on your business and the ability to predict. Numbers take the ambiguity out of what you want to accomplish. They help identify goals, hold everyone accountable, and ultimately take your business to the next level. If you need help establishing numbers for your business, contact us. We can help.
EOS is a holistic management system with simple tools that help you do three things we call vision, traction, healthy. Vision from the standpoint of first getting your leaders 100% on the same page with where your organization is going. Traction from the standpoint of helping your leaders to become more disciplined and accountable, executing really well to achieve every part of your vision. Healthy meaning helping your leaders to become a healthy, functional, cohesive leadership team.