What Are the Critical Business Performance Metrics Right Now?

For many, the focus over the last few months has necessarily been on the financial position, performance and projections of the business. Cash, revenue, costs and margins have all been the critical metrics the business had to understand in detail and react to, sometimes on a daily basis.

Yet the concept of a balanced scorecard or dashboard is embedded into many businesses, with key metrics around customers, organisational health and internal effectiveness as well as the financial position well established. Typically, a business may monitor 8-15 key measures across these areas which are forward looking, reported on regularly and with the accountabilities for each metric clear. The overall aim is to act as an early warning system and enable corrective action to be taken if the metrics suggest future performance could be off track.

Now might be a good time to take another look at this business scorecard or dashboard. In particular, the metrics around customers and organisational health.

From the customer perspective, there may have been significant changes to products, services and the way in which a business delivers for it’s customers over the last six months. Likewise, the customer’s own business could have undergone significant change.

It’s a good time now to understand what customers really need and if the business is still doing a good job for them. Not just in ‘table stakes’ delivery around service, quality and cost but also in other aspects such as providing industry insight or anticipating and responding to changing requirements.

Having the discussions with customers, understanding what success looks like through their eyes and then putting in place the measures to ensure the business will continue to meet customer’s needs is critical. As we look forwards, it will be those businesses that best understand the changing needs of customers and are able to best deliver it that will win. As it ever has been.

The last six months has also likely to involved significant change for everyone inside the business. New ways of working and potential structural changes and staff reductions may have had to happen.

Yet the engagement and commitment of people is fundamental to success and this can be difficult to maintain during periods of disruption and change. Now would also be the right time to ‘health check’ the organisation and to design the right measures to monitor and review the situation.

With many immediate pressures, it can be difficult to take a step back and look forwards right now. Yet understanding how well the business is doing for customers and ensuring people are aligned, engaged and committed is critical going forwards. It is a good time to review these two fundamental aspects and ensure the right metrics are in place and embedded in the management practices of the business.