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Does Your Company Make This One Common Mistake?
28 Nov 2016

Does Your Company Make This One Common Mistake?

28 Nov 2016

The keeping of, analysis of, and full use of statistics is a fundamental must in the management of your company. Most companies do do this but the question is, “Who is keeping, analyzing and making full use of the statistics?” In my experience, I very, very often see only the owner or a handful of high-level managers tracking numbers to administer and manage the company. The biggest problem with this is that it creates a situation where these people become the only people truly responsible for production within the organization. Do you see how that is?

Why should it only be owners and high-level executives and managers tracking and using statistics?

The answer is, IT MOST CERTAINLY SHOULD NOT BE!

But, this happens and it happens rather naturally, even though it shouldn’t, because, let’s face it, as the owner or high-level exec, at the end of the week or the end of the month, your numbers are there or they are not. You do have to take responsibility for that. BUT if you are the only one pulling your company along toward success because you are the only one who knows what the numbers are, that will only tend to create less direction and motivation for your employees and more stress for you.

Statistics on a tabletA company grows when everybody in the organization wants it to grow and that growth is derived from each individual person’s production and, so, is represented in the measurement of that production – a statistic for that production.

A word of caution: be sure that each individual’s statistic is a true representation of the valuable result you want from them and not just a measurement of something they do.

After all, what are you paying them for? Are you paying them for doing things or for achieving a valuable result? You are paying them for valuable results, so make sure everyone in the organization has a statistic that represents the production of the valuable result you want from them and make certain that each individual is tracking, analyzing and using that statistic to improve their performance themselves.

If you do not currently have a statistic assigned to each individual in your organization, and you do this, you will find it will create some very interesting and beneficial effects.

  1. As mentioned before, it will take stress off of management as responsibility is rightfully and properly spread throughout the organization.
  2. Your good and willing employees will rather naturally respond by taking more responsibility to push their statistic and results upward and do their part to create more success for the company. They will have a more specific direction and target.
  3. Lazy and shiftless employees that you might not have previously seen will be made visible to you and you will be able to find those theretofore hidden problem areas that can be corrected to create even more success.
  4. You will be able to more precisely determine where corrections need to be made in the organization as you begin to see the relationships between certain statistics and you will be able to find weak points as you understand which statistics comprise the major statistics. You will become more capable and swifter to put into play actions to improve the business as you will be more able to see the weak areas.

 

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