What Gets Measured Gets Done
The Lack of Accounting and Reporting in Business is Stunning. I am still amazed at the proportion of businesses that exist on only one measure: “how much money ended up in our bank account last month?” And they then conclude, “if the balance is positive, we are winning.” What they don’t realize is that measuring and reporting is not just a best practice – a nice to have – it is a fundamental driver of growth.
Companies that Prioritize Measuring and Reporting Results Gain a Significant Advantage. Tracking key performance indicators (“KPIs”) and transparently sharing progress not only drives efficiency but also:
· Increases accountability and focus. When employees and teams have clear metrics to measure their performance, accountability naturally improves. Defined goals ensure that everyone understands expectations and is motivated to achieve them. Transparent reporting also encourages responsibility, as results are visible to stakeholders, reducing the likelihood of inefficiency or misalignment with company objectives.
· Drives better decision-making. Data-driven decision-making is crucial for business success. By consistently measuring and reporting results, leaders gain insights into what is working and what needs adjustment. Instead of relying solely on intuition, companies can use objective data to refine strategies, allocate resources effectively, and mitigate risks before they become critical problems.
· Leads to continuous improvement and innovation. Businesses that track their progress can identify trends and areas for improvement. Regular reporting helps companies refine processes, adopt best practices, and foster a culture of innovation. When employees see measurable results, they are more likely to suggest improvements, leading to incremental and breakthrough innovations that enhance efficiency and competitiveness.
· Increases stakeholder confidence. Investors, partners, and customers appreciate transparency in business operations. Companies that report measurable results demonstrate credibility, stability, and a commitment to progress. This transparency strengthens relationships with stakeholders, increasing trust and engagement, which can lead to greater investment, partnerships, and customer loyalty.
· Aligns strategy with execution. Setting strategic goals is only effective if there is a system to track and evaluate execution. Regular measurement ensures that business activities align with long-term objectives, preventing misallocation of time and resources. When teams know their performance is being measured against strategic benchmarks, they stay focused on what truly drives success.
Use the Net Promoter Score Metric. Developed by Bain & Company in 2003, the Net Promoter Score metric measures how likely customers are to recommend your product or service. SurveyMonkey (www.surveymonkey.com) offers this in their survey offerings. I won’t go into the details here, given how easily the tool is accessed and explained, but this is used by an overwhelming majority of successful companies (e.g., over 70% of Fortune 100 companies). It is a good practice to survey at least annually to monitor how well you are doing.
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