🔊 If you are not measuring your strategy performance, you are not going to achieve your strategy goals 🔊
A simple statement but so on point! Strategy performance management is a crucial element in any strategy.
Building a framework for your strategy performance will ensure that you will take a holistic approach to manage metrics. But that doesn’t mean managing everything, defining the key metrics will keep you on track.
When you get into a situation where you manage every metric, that is you think you are playing the safe game, you end up not only doing more work to get this data… More importantly, you lose sight of improving the KEY METRICS that will drive your strategy performance in the right direction.
So what are those metrics?
There are quantitative and qualitative
This is more on the qualitative side and it’s done through conversations and instincts.
But what does that mean?
As I’ve discussed in a previous blog on strategy culture. It’s important to bring your team(s) on a journey they have to win as well as the business!
Have you done this? Can you see their motivation for it?
This can be understood through 1on1s with managers. Also, on how the strategic plan has been set up.
Are there cross-functional teams?
Are teams helping each other?
Are they self-driving?
There are the questions that can give you a good understanding of the levels of engagement there is for the strategy
Operational & Capacity Performance
I can’t tell you how important this is and there are a number of areas of measurements to consider
- Output Metrics
- Right First Time
- Turn around Time to delivery
As you improve these a number of things happen. You will increase your capacity and get paid quicker!
And this increases capacity for more sales without more labour: (Profit on top of Profit). That is to reduce costs and lead time to invoice improved cash flow and profits. You’ve literally
SCALED YOUR BUSINESS WITHOUT SCALING YOUR COSTS
Again more on the qualitative side and received through conversations, many larger companies employ 3rd parties to manage NPS scores. The same results for smaller businesses can be done through conversations with customers,
Feedback surveys and then advanced level. Are they referring you to their networks?
When you think about it, the goal of any strategy is to scale your business! So financial success measurements are a key part of any strategy performance management. This view should be visible through measurements like:
- Resource optimisation
💥 I hope this helps, If you have any questions, please get in touch.