What business compass do you use?

What business compass do you use?

Welcome, fellow business navigator! In the vast sea of corporate strategies and operational complexities, having a reliable business compass is essential for steering your organization towards successful outcomes and transformational growth.

In this blog post, we’ll explore the concept of the “business compass”—what it entails, why it’s crucial for achieving clarity and strategic alignment, and how it can serve as the guiding light for your corporate journey.

Through personal insights, we’ll explore the key components of an effective business compass and how they can be integrated into your organization’s framework. Whether you’re a seasoned executive or a budding entrepreneur, understanding the importance of a business compass is paramount for achieving sustainable success.

Join me as we unravel the intricacies of strategic collaboration, operational excellence, and employee empowerment—all essential elements for achieving positive business transformation. Together, we’ll connect the dots between corporate goals, resources, and solutions to chart a course towards greater clarity and impactful decision-making.

So, whether you’re seeking support in refining your business compass or looking to align your website content with your organizational vision, this post will provide valuable insights and actionable strategies to help you navigate the ever-evolving landscape of modern business. Let’s discover the power of a well-calibrated business compass!

Discovering the magic of statistics

Years ago, when I had my first business, I was always working hard. I was always looking to come up with better strategies to advance my business.

I did get it to expand quite fast, but then it would hit a ceiling. Some months at the end of the month I would be sitting late at night trying to figure out how exactly I was going to cover all my expenses. Some months were great and I would have more than enough.

It was a constant up-and-down battle. It also left me with the problem of not being sure if I could spend excess money on things to expand the business, as I had no way to predict if the next month would be better or worse.

I was frustrated and felt like I had no compass to steer by…

Then I discovered the magic of statistics! It changed EVERYTHING. By using these I could predict, and even influence, my expansion directly despite external factors!!

Businessman composing a successful financial chart with arrow going up, he is using green paper cuts, eco business and financial success concept

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 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 to 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.

Female office workers are analyzing graphs data. They use a laptop.

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 to an organization as a whole?

How to use statistics in an organization

How can you use statistics in an organization in general to have the ability to predict the future and to have control?

In an organization, the three main statistics that one should monitor as a bare minimum are your gross income, value of delivery and your marketing.

Close-up of business document in touchpad lying on the desk, office workers interacting in the background

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 by 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 to 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 statistics 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 is 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 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 have a hosting service where we host our clients’ videos and send them weekly or monthly reports on how their videos are performing. With this information at our fingertips, we were able to give more detailed insights into how the video could be improved.

Conclusion

In conclusion, we’ve uncovered the power of transformation that statistics hold. They guide business decisions and chart a course towards success. By using statistics, organizations can gain valuable insights, take control of virtually any situation, and drive meaningful change.

Statistics serve as a powerful tool for figuring out what’s going on in business. They help us spot trends, see what’s working, and make smart choices, even when things are uncertain. Whether it’s looking at sales numbers to improve products or keeping an eye on performance metrics to optimise operational efficiency, statistics provide a reliable compass through all the twists and turns of running a business.

But it’s not just about collecting data—it’s about how you use it. By leveraging main and sub-statistics for the organization and analysing gross income, value of delivery, and marketing, organizations can uncover hidden opportunities, mitigate risks, and drive strategic initiatives with confidence.

Furthermore, all employees need to use data to make decisions. From top-level executives to frontline employees, everyone plays a role in utilising statistics to inform their actions and contribute to achieving organizational goals.

Whether you’ve been running a business for years or you’re just getting started, using statistics can make a huge impact on your success. By making statistics part of how your business operates, you’ll be setting yourself up for steady growth and lots of new ideas.

In essence, the business compass you choose to use—guided by the principles of statistics—can lead you towards a future defined by clarity, confidence, and success.

Now that you’ve glimpsed the transformative potential of statistics in steering your business towards success, it’s time to take action. Embrace the power of data-driven decision-making and unlock the full potential of your organization.

Start by identifying your main and sub-statistics, tracking them diligently, and analysing the insights they provide. Whether it’s monitoring gross income, assessing the value of delivery, or evaluating marketing efforts, every data point holds valuable information that can guide your next move.

Additionally, foster a culture of accountability and ownership within your team. Equip each member with measurable objectives and empower them to drive results that contribute to the organization’s overarching goals.

And remember, the journey towards statistical enlightenment is ongoing. Continuously refine your approach, experiment with new methodologies, and adapt to evolving business landscapes.

So, what are you waiting for? Seize the reins of your business’s destiny and embark on a journey guided by the unwavering compass of statistics.

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