[Photo: The Grand National Steeplechase]
Measuring how well your business performs has been a top priority for many companies in recent times. That said, there have been questionable methods adopted on the measurement of their company's performance, ultimately missing the mark on what makes their business tick. On top of that, there remains some barriers that can impede their goals at measuring how their company fares against their competitors. The question of why we measure business performance is still relevant today. Bititci, Carrie and Turner (2002) have briefly summed up the reason as:
- Monitor and Control - Drive Improvement - Maximize the effectiveness of the improvement effort - To achieve alignment with organizational goals and objectives - To reward and discipline
Once we have established why we need to carry out the process, the next stage should be what barriers we need to overcome in order to execute effectively. It is common for businesses to be overloaded in information, and this can prove to be quite a burden in assessing how your company performs. Further, service quality and consumer satisfaction are key factors that need your undivided attention. It is the employer's duty to increase their involvement heavily in quality related services.
Other barriers worth noting are wrong or inaccurate information. This could prove very costly and could affect your company's performance over time. Ambiguity aside, how that information is measured should ultimately show what the user really wants; not solely for the good of the company. For a company to overcome these barriers they need to have:
- Diversity - Data Quality - High Adoption Rates - Good Strategy and Measurement Skills
Through use of new, innovative BI tools, such as ScoreCards and Reporting, companies can now better measure their business' performance. It will fare well for the moment, but it will require adopting new techniques to add to their skill set along with these tools to truly measure their company's run in the long term.