Do you measure the right things?
Having spent time with leaders and coaches all over the world my experience is that they often think they know the critical success factors in their business, but in reality they have only a very weak sense of it.
Imagine a company recognizing that customer satisfaction is the most important parameter for profitability. The leaders are convinced that, what primarily drives positive customer satisfaction is a low employee turnover. Eventually, they start realizing that some stores with very high employee turnover are extremely profitable, while other stores with low employee turnover are suffering. Through an in-depth analysis of critical success factors the company starts to understand that the most important indicator of customer satisfaction is a low employee turnover among store managers, but not among the general staff. As a consequence they move their focus from retaining employees to retaining store managers – a strategy which both boosts revenue and profitability.
Well, not all leaders go this far and actually. realize that they are wrong. Their lack of understanding of the critical success factors kills the company from the inside. My question to you is: How much do you really know about exactly what makes your organization profitable? Are you measuring the right things?