- Johnny's building his business.
- He doesn't keep track of how many customers come daily.
- He fails to improve.
Think baseball. Without keeping score/standings/records/leaders/yaddas:
- Baseball players couldn't strive to improve.
- Baseball team execs couldn't play the best lineups.
- Baseball would suck.
Like baseball peeps, business execs fail to improve because they think:
- "I can just 'feel' how well we're doing!"
- "I already know who the best people are!"
- "I don't need to keep score!"
Yet, if you don't know objectively what really drives the performance of your company, you'll ruin its potential.
What Performance Drivers?
Performance drivers: Anything that helps you keep track of how well you do.
For instance, those might include:
Think Katherine + Bobby
- Katherine builds 100 widgets/hour.
- Bobby builds 70 widgets/hour. But, he's a crazily charismatic schmoozer.
Without understanding objectively who drives better performance, you might be tempted to give Bobby a raise over Katherine.
Times that by one-kabillion...
...according to your employee count, and see how much lost productivity revenue you waste.
- You pay $X amount for less performance.
- That leaves you less money to buy more productivity.
- Result: Lost revenues.
Baseball teams don't pour millions into charismatic dudes who bat .200.
Likewise, your business would destruct its potential if it doesn't understand who/what really drives the performance of your company.
Keep @#$% score.
Posted on April 21
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