The failure to use metrics, measures, standards, and indicators is a 100% guaranteed waste of money.
A few basic calculations can help you convert wasted money into cash reserves in the bank. For example, calculating your Gross Margin from your P&L Statement is a straightforward calculation that immediately tells you whether operations are making or losing you money.
Overview
Metrics, Measures, and Indicators are used to create Business Intelligence that will never exist until you convert transaction data your business creates into the he “black or white” power of business insights to your decision-making.
Metrics are standards of measurement by which efficiency, performance, progress, or quality of a plan, process, or product are assessed.
Measures record a directly observable value or performance. All measures have a unit attached to them, such as an inch, a centimeter, a dollar, or a liter.
Indicators indirectly measure a value or predict an outcome, such as customer satisfaction.
The results of your Metrics, Measures, and Indicators will establish whether what you want to happen is or isn’t. There are no shades of gray to distract you from making insightful decisions. Fail to convert your information into verification of what’s working and what isn’t robs you of the ability to know if your business is on track to make money before it’s too late.