What business compass do you use? – Part 2
How do you use statistics to take control of virtually any situation in your business?
Firstly, each business, or each position in a business, has a main statistic and then sub-statistics. The main statistic would measure the main thing you produce or need to track to measure your success.
For the sake of a simple example, let’s use a salesperson. His or her main statistic would be sales. Then the sub-statistics would measure all the other actions needed get to the sale. So it could be something on the order of leads generated, calls scheduled, appointments made, sales calls, proposals sent and amount of follow ups. Sub-statistics add up to the desired result or product.
All relevant stats should be graphed and tracked. They can be tracked weekly, daily and even hourly. By doing this you can see at a glance exactly where there is a breakdown and you would be able to predict a slump in your sales.
This gives you a whole new level of control. If, let’s say, your sales are down for some reason, instead of going into a panic and getting your attention stuck on the lack of sales, you’d simply need to look at these sub-statistics and work like mad to get them all up and your sales will come off. This is really simple to do, but it’s extremely powerful.
So how does this apply for an organization as a whole? Stay tuned for the next article where I will be shedding some light on this.