You Can't Manage What You Can't Measure

Published: Oct 6, 2004

Application

For better management decisions, apply measuring to all your business functions.

Finance - Measure more than just the mandatory data for the tax collector. Management accounting should include: daily bank reconciliation, budget-actual schedules, financing ratios (ROI, payback periods, leasing versus purchasing, etc.) effects of additions or deletions, economies of scale, project controls and anything for which managerial decisions are made.

Marketing - Measure promotional expenditures and results for each campaign, budget-actual schedules, relevant data for opportunities foregone or deferred, client-centered activity and profitability, Customer Relationship Measurements and a whole host of planning data related to the many marketing activities and decisions.

Operations - Compare your operating ratios (overhead, production expenses, inventory levels, space usage) with whatever ratios you can glean from your industry or similar operations.

HRM - Quantify performances, recruiting, training, supervision span, turnover, reorganizing and change disruptions.

Consider this your starter list of possible measurements that can be integrated with your database system.

Stories

Stories from members will add great value to these maxims

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Outcomes

Recognizing what should be measured.
More precise decisions.
Improved and relevant performance.

You Can't Manage What You Can't Measure

Application

Stories

Outcomes

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