What would you do if you had the ability to improve your bottom line performance 4% with just a simple, single action?
I was recently in Canberra preparing for a session with a client. Part of my preparation is to go for a run in the morning to clear my head and ensure I am focussed on the day. Being a new area that I was unfamiliar with, I ended up running through several patches of very poorly lit paths (think filtered street lights in the very early morning) which saw me treading carefully. Thankfully I made it back to my hotel unscathed and ready to give the client my best. The following morning I headed out again and this time I improved my time by 4% through no additional effort. Both days I knew where I was going and the turns on the way (so my Vision, Plan and Rocks were in place), the weather and time of day were the same, so with all things being equal, what made the difference?
A single piece of equipment and a simple decision. As I was heading out the door, I grabbed my head torch and put it on. This time when I approached the dark areas, I was able to put my feet down with confidence as I could see the path ahead. I felt more comfortable and this flowed through to better performance. I had left the head torch in my room on the first morning, so whilst I had access to it, I chose not to use it.
Needless to say, this got me thinking about how shining a light (in my case literally) on where you are going brings visibility to what is happening in your business. With this improved visibility, you are able to make decisions with greater confidence and react to changing circumstances quicker. Do you know the numbers that provide the visibility you need?
What are the 5 to 15 numbers that tell you exactly how your business is doing? They can’t just be any numbers though. They should be leading indicators, those that show how you are going and are able to do something about, rather than trailing indicators, those that show you what has happened and you are unable to do anything about. Once you have identified the right numbers, review them on a weekly basis and work with the team member who is accountable for driving the activity behind the number to ensure they are meeting or exceeding the agreed goal. In addition, give yourself some perspective by capturing a rolling 13-week view. This allows you to step back and spot the patterns and trends that you would otherwise miss when focussing solely on a week by week level.
Improve your performance by shining a light on your business: