What compass do you steer your business by? – Part 3
I hope you have found the first two articles in this series helpful. Now let’s see how you can use statistics in an organization in general to have the ability to predict the future and to have control.
In the previous email we used the example of a salesperson and how he/she would have sub-statistics that add up to main statistic and could use that to have control and excellent prediction. If you haven’t read that one, go check it out, otherwise you might be a bit lost.
In an organization the three main statistics that one should monitor as a bare minimum is your gross income, value of delivery and your marketing.
Gross income would be simply the total amount of money that was received that week (or time period).
The value of delivery would be the amount (in money) of services rendered for that week. This one only applies to service businesses, usually. If you are selling a lot of services but not delivering, you are heading for trouble.
The marketing statistics would depend on your strategy but could be roughly measured at how many communications were sent out. For instance, how many emails were sent out for that week, how many LinkedIn messages, FB messages, ads run, phone calls… you get the idea.
Now, as in the example of the salesperson, the same would apply with these main statistics for the organization. They would also have sub-statistics that would add up to the overall statistic ,and by working on the sub-statistics, and bettering them, you could easily influence the main statistic.
One thing to keep in mind here is that you could have a person, like a manager, who is in charge of the main statistic and has juniors who are working on the sub-statistics. So each employee should have a statistic that is measurable and that he or she directly responsible for. This makes it very easy to see who is actually doing their job and who’s not.
As an executive this gives you a lot of information that you can act on. It also gives you a type of a crystal ball, as you would already see if you are on your way to success or disaster weeks in advance. You can also start ignoring opinions about staff and see their worth in your organization by the results they produce.
One of the golden examples of the crystal ball is – when we drop our communications out (emails, FB and LinkedIn messages, articles, phone calls, any outbound messages), a decline in income soon follows! So, by tracking communications sent out, and catching it immediately or early if it drops, we can prevent future pain!
Here at Impact we use statistics every day to expand our business. By the use of this we expanded our business about 14 times in 2018.
And on this note of using statistics, we are busy with a very exciting service we will add to our already awesome videos. A hosting service where we would host our clients’ videos and send them weekly or monthly reports on how their videos are performing. With this information at our fingertips we would be able to give more detailed insights to how the video could be improved. We will let you know as soon as this service is available!
Next week we’ll look at failure and why you should get excited about it.
hope that helps! Let me know what you think and if you have any questions!
