Don’t Be Guilty of Measurement Malpractice

You and your leadership team set goals, right? You share those goals with your employees and provide resources to them, so they can help the company meet the goals. And you know that you must take stock from time to time, so you use your monthly P&L or sales report or other snap shots to see how your actuals compare to the goals.

Commit to Quality Measurement Practices

My own business advisor coined the term “measurement malpractice” and boy, does it make sense! It means that you don’t measure the right inputs (actions or behaviors) carefully enough, and that most measuring comes after it’s too late to do anything to achieve the desired outcome. This is the problem with conventional key performance indicators. They measure success or failure with regard to outcomes, not behaviors or activity.

Quality measurement practices record the daily inputs of the right actions. Think of the repetitions you do at the gym, or when building any skill. You can only complete the marathon, or beat your tennis opponent, or flawlessly play a sonata by repeating the right behaviors. You measure your inputs as you train, with the goal of being ready for a stellar performance at the competition.

6 Quality Measurement Practices

I work with my business owner and professional clients to institute these six quality measurement practices:

  1. Set 30-day quantitative goals for every important outcome (The 6 Focus Areas)
  2. Establish daily actions required to meet the outcomes
  3. Record everyone’s number of actions at the end of each day
  4. Assess weekly if there is a need for remediation or an opportunity for acceleration
  5. Reset the counters to zero at the end of 30 days
  6. Set new 30-day goals for every desirable outcome

Quality Measurement Practices Improve Everyone’s Performance

The first thing to notice is that the 30 days goals are focused on behaviors or inputs, not outcomes. In my 24 years of business ownership, I have always seen that the more consistent the performance of the right behaviors, the more often companies reach the outcomes they desire. When you do the opposite, setting performance goals in terms of outcomes (i.e., number of closed sales, number of A+ quality ratings, number of closed service tickets), you can only evaluate after the fact. And once an outcome is missed, either it’s missed forever, or you panic and overwork everyone to try to catch up.

When you set goals for behaviors, and record the number of behaviors each day, it will quickly become clear who is doing what. Those who are doing what is asked of them will keep going. Those who have fallen behind or strayed off the path can receive support or coaching to keep up. Catching and remediating a problem in week one will stop it from bleeding into weeks two, three and four.

Success Story

My client, a deep, deep expert in her field, came to me with many spreadsheets of names and contact information that she didn’t know what do with. I helped her sort through them and segment the contacts into groups that are meaningful to her business. She worked hard to complete in writing a one year Cultivate and Nurture Plan that would serve the two key purposes of marketing: being top of mind and creating demand.

She has been diligent in sticking to the schedule of writing and distributing her marketing materials. She has content ready for the coming months. Her pipeline is active and her client engagement calendar is filling up. She is beginning to see results in terms of client work—the outcome.

What she is measuring is her performance of the marketing work. And she is a super star.

Do You Want to Be a Measurement Star?

What quality measurement practices are you performing every day? If you’re not measuring things, or you’re not even sure what to measure and how to set your counters, please book a Listening Call with me. If you think it’s time to accelerate your company’s revenue, it’s time for sure to implement quality measurement practices. I look forward to opening a conversation with you. 703-790-1424.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.