“Metric Shmetric”

15 11 2012

Why Innovators Should Care About Key Performance Indicators

Congratulations!  Your innovation has been approved and you are the lucky Eye-Cubed executive who has been chosen to implement.  You are the best person in charge of the greatest opportunity.  It is time to build the plan, rub your hands together, pour the coffee, roll up your sleeves and dig in.  You get to execute on the vision of a new innovative product or process.

But you are not alone.  There is an entire organization looking at your work.  Do you feel the pressure yet?  There are folks on the sidelines watching and waiting for success or failure.  Are you getting nervous?  While it is unclear who is paying attention to your results, results are what you need.  In order to shine, you need to demonstrate that the new innovation gets your organization closer to the Promised Land.  It will take an Eye-Cubed effort to succeed.

As you develop your plan, make sure that you incorporate metrics into the mix.  Analysis is the key to determining if your initiative is on track for the penthouse or the outhouse.  The metrics drive the analysis which drive the actions that drive the results.

Over the past 17 years as my company’s innovator, I lead many of the greatest initiatives we have pursued.  In the process, I have developed metrics for everything from cold calls for appointments to closing ratios from call center insurance sales.  Manual and automated tracking systems have been developed to measure outbound lead generation, customer service, direct mail, cross sales referral, retention and metrics linked to face-to-face top line sales formulas.  No program is too small or too large for a healthy dose of key performance indicators (KPI’s).

When it comes to proving yourself, no one will give you the benefit of the doubt.  It matters not how energetic you were when you presented to the team about the potential of the initiative or how big you dreamt the impact would be on the bottom line.  It does not help proving your case when you throw impressive numbers on the flip chart and show the millions of dollars the innovation will bring the company.  Regardless of this fact, we tend to do just that at the wrong time which hinders our cause.  The reason for this is quite simple.  Everyone wants you to cut the $#!+ and:

SHOW ME THE MONEY!

Here is how you gather the data:

  1. Break down the process into specific activities
  2. Measure each activity independently
  3. Create appropriate time frames in which to track
  4. Be prepared to track manually if needed
  5. List all actions that could improve the metrics
  6. Identify the key metric (one number) that demonstrates ultimate results
  7. Develop a dashboard that presents all key metrics for visual analysis
  8. Maintain all data behind the metrics to analyze as needed

As you build your successes, don’t just tell folks about it.  Show the results to your team.  Perform tests by making specifically calculated changes (usually a change in action) and measure the impact those changes have on the results.  Maximize your performance with targeted activities and watch the overall metrics improve.   Dig deep into the data to understand the “why” behind the numbers to realize that the measurements drive us all towards our goals.  The dashboard (tool consisting of a collection of key metrics) of KPI’s that you ultimately create is the numerical visual for all to see.

If you, your company, your industry conference or team is in need of the best keynote speaker, motivational management consultant, or inspirational presenter for your conference, strategic planning meeting or for professional development, click on these words and see how Eye-Cubed-U is prepared to help you. 

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2 responses

15 11 2012
Joe Sperduti

Ah, the old Metric Shmetric. Ha Ha!

Enjoyed the post!

Keep em coming Dave.

Joe

Joseph B. Sperduti, ACS

Vice President

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Security Mutual Life of New York

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18 11 2012
yaagneshwaran

Brilliant David, I had just touched upon KPI’s in one of my blog posts. Also not to forget originality in a world where we continuously sue each other in the name of IPR 🙂

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