Daily IMPACT Indicators
How do you know if you win or lose each day in your business? When you’re leaving for home at the end of your day or else arriving at your office first thing the next morning, how do you know if you accomplished what you should have?
There are a lot of opinions on whether or not daily metrics are valuable enough to expend the effort and resources to tack them each day. And, there are also a lot of opinions on what metrics should be measured daily. Based on my experience with lots of different small and medium-sized business in every industry imaginable, I want to tell you what I’ve found to be the best practices for companies like yours.
First, daily reporting and Business Scoreboards become more valuable the bigger and more complex your organization grows. As qualitative information becomes more anecdotal and less reliable in terms of indicating anything close to what is really going on within your company, your need for and dependence upon daily reporting will grow. They are positively correlated. The bigger you get, the more you need IMPACT daily reports.
Detailed and exhaustive daily reports are almost never helpful for small and medium-sized business. The information captured on the Weekly and Monthly IMPACT Indicators® usually is all you will need in terms of covering all aspects of your business. But what is helpful to see on a daily basis is a report with one to three of your most critical metrics.
So, how can you establish daily reporting that will add value to your business? You need to start with determining what your one to three numbers are. Retail stores often measure gross profit per customer visit and total number of customer visits. Manufacturing facilities may benefit from similar measurements of gross profit totals.
But you can see a trend, I hope. You need to be concerned with bringing in enough volume and the right gross margin to hit your objectives for your business. Steve was just happy to see that he was generating enough gross profit to break even, but hopefully your goals are a lot better than that.
In addition, you will benefit from having some way to see how much sales volume you can expect in the future. This is very difficult to measure in retail, although those that have layaway and similar programs are securing sales revenue for the future. Manufacturing and even service businesses, especially those that have to bid for work and work under certain contractual agreements for their customers, can use a number similar to backlog to see where they are headed.
|Daily IMPACT Indicators®|
|Insightful||Forces business to hone in on its core competency|
|Meaningful||Drills down on pivotal performance drivers|
|Precise||Quantitative means to answer "Did you win or lose today?"|
|Accessible||via SaaS technology using interactive, powerful charts and graphs so you can spend your time improving your business, not analyzing hard-to-read and even harder-to-understand reports|
|Comparitive||prior periods, goals|
|Timely||Daily, by the next day|