Apart from how much business is in your bank account, do you really know what’s happening in your buisness?
Your turnover is a vanity figure and doesn’t really tell you the state of your business. A much better figure to track is your profit. This will tell you that you’re actually making money!
Performance management is about knowing which statistics tell you a story; which ones tell you what’s really happening. Customer reviews will tell you what your customers really think about you and your service. Your social media will also what’s happening. If your customers aren’t happy, they will soon tell you via your social media feeds so it’s important to monitor these regularly and respond quickly to any negative comments.
The big companies have people monitoring their social media 24/7 for exactly that reason. People are more likely to take their grievance to social media these days and with the speed of the internet, it can go viral almost instantly. This is the same for good news stories as well so make sure all your media coverage is positive not negative.
Potential customers are very fickle. If you don’t answer the phone quickly enough, they will go elsewhere! Sounds ridiculous but people are very impatient and expect an instant service these days. Monitoring the number of rings before the phone is answered my keep your customers and enable you to convert enquiries to customers.
What about your staff? If you have a member of staff who is consistently late or under-performing then there will be a reason. If you’re not monitoring attendance or sickness rates, then you probably won’t realise how big the problem is.
The same can be done with your suppliers. Are your deliveries on time? How often are they late? Is a pattern of late deliveries affecting your business and the service you deliver to your customers?
All of this might seem a bit over the top but have a look at your business. Are there areas where you could do better? The answer is nearly always yes in one area or another and the more efficient you are, the better service you will deliver and the more loyal your customers will be.