Selecting Metrics to Measure Performance in Distribution
Steve Epner, President — the Startup Within
• profit analytics • WayPoint Analytics • distribution management best practices • management strategies • efficiency • operational excellence • business analytics • Randy MacLean • wholesale distribution • management metric • strategy for CEO • strategy for CFO • Steve Epner
Monday, March 13, 2017—The Analytics of Accountability
Join Randy MacLean and Steve Epner, President of The Startup Within, as they discuss best-practice management techniques you can use in your role as a driver of performance for your business unit.
It's no secret that businesses are increasingly interested in analytics, and distribution is no exception. Successful companies are turning to a numbers-driven strategy, as opposed to running based on instinct and memory. Steve's book, Simplify Everything, is a great resource for managers and executives who are looking to measure and continue to improve performance.
The Analytics of Accountability
The quickest and most efficient path to improvement is to first find a good measure. You must be able to focus on what you are trying to improve before you can improve it. So, what do you need to know to select and implement effective measures?
Today we have an unprecedented ability to define metrics, gather information and perform calculations correctly, and in real time. This is good news, but to be effective you and your team must:
1) Have a common understanding of the metrics that will be used
2) Come to a common agreement for how the metrics will be calculated
With a clear understanding and agreement, the team can then hold themselves accountable.
Determine Where You Are Today, then Move Forward
Once you have defined metrics and have buy-in from your team, it's time to decide on a reasonable future state. It's important to negotiate a reasonable goal that everyone feels is attainable. Ask yourself these questions:
•Where do you want to be?
•With what resources?
Don't force the team into a stretch goal. Set goals that can be met or exceeded. Be sure to keep track of milestones for the journey, and publish and share the data as you go to keep your team motivated. All teams should know how each team is doing to hold each other accountable.
And don't forget to celebrate success. Nothing breeds success like success!
For more information about Steve Epner, visit: www.thestartupwithin.com