There are many advantages and disadvantages of tracking metrics, for metrics to be an advantage, you need to know what type of data to track. This means that as a business owner, you need to define your business’s objectives. You should be thinking about how you can identify activities that employees can do to meet the objectives you desire.
Another thing that many company owners forget to do is re-evaluate the statistics regularly to verify the links between employee activities and the objective goals you stated. Tracking metrics is not always an easy task. It is important that if you want metrics to be an advantage, then causality must be proven and must be easily accessible so you and your employees can track the progress of the business. You must be careful though when choosing a metric because it can have a negative effect by removing employees and resources away from the objectives that are aimed to help grow the business. You want to make sure that it does not cause your employees to chase measures that do not help company goals.
Our next tip is hard for many people to understand; it is necessary not to choose specific metrics because they are easy to generate or because it is the routine that other companies may be doing. For metrics to be a strength for your corporation, they need to be the ones that have the greatest utility for your business and not something that others may find obvious. Many clients are always asking, “When should a company start utilization metrics? Should it be when you have 5 or more employees or when they have their first project over a XX-dollar amount?” The answer is simple! Anytime a company starts a project, we recommend that tracking metrics should be a priority
Tracking metrics is important in order to make sure you are meeting the requirements and objectives. Remember that every company is different and may vary in size and employee numbers. That is why the number of employees should be disregarded, whether there is only one employee or a million employees. Another significant aspect to consider is that different types of metrics are trackable, and you do not have to rely on basic sales revenue tracking systems. There are so many different ways that a company can track its progress, including, but not limited to: customer loyalty and retention, qualified leads per month, lead-to-client conversion rate, monthly website traffic, meeting various milestones, etc. There is an incredible amount of ways that you can track success in your company – you just need to figure out where your objectives lie and go from there.
Determine Metrics That Are Right For Your Business. We Can Help.
Reston, VA-based Revolutionary Solutions, LLC, can consult with you to make sure you are measuring what matters when it comes to tracking progress and success. Contact us to learn more and find out how we can. As small-business owners, we’ve been where you are now and can help you with a plan matching your business activities with your goals. For more financial management services or government contract management help, count on our team to be there for you from start to finish.
Article by Brittney Floyd, Revolutionary Solutions, LLC.