What Gets Measured Gets Managed
The phrase What Gets Measured Gets Managed is a famous quote by management consultant Peter Drucker. This statement implies that by measuring something, it becomes a priority and can be better managed. In other words, if you can measure it, you can improve it.
1. Importance of Measuring Performance
2. Examples of Measuring Performance
3. Benefits of Measuring Performance
4. Limitations of Measuring Performance
Importance of Measuring Performance:
Measuring performance is essential in any organization as it allows managers to track progress and identify areas for improvement. Without measuring, it's impossible to know if objectives are being met or if there are any shortcomings that need addressing. By measuring performance, managers can identify where they need to focus their attention to achieve desired outcomes.
Examples of Measuring Performance:
Performance can be measured in various ways, such as through financial metrics, employee productivity, customer satisfaction, and product quality. For instance, financial metrics such as revenue, profit margins, and return on investment provide insights into the financial health of a company. Employee productivity can be measured through key performance indicators (KPIs) such as sales per employee, customer service satisfaction, and employee turnover rates. Customer satisfaction can be measured through surveys and feedback forms, while product quality can be assessed through product testing and quality control.
Benefits of Measuring Performance:
The benefits of measuring performance are numerous. By measuring performance, organizations can set benchmarks and goals for improvement, track progress, and identify areas for improvement. This leads to increased efficiency and productivity, better decision-making, and enhanced accountability. Moreover, measuring performance can motivate employees to achieve their goals, leading to a positive work culture and increased employee engagement.
Limitations of Measuring Performance:
While measuring performance has numerous benefits, it also has limitations. Measuring performance can be time-consuming, and it may not capture all aspects of an organization's performance. Moreover, metrics can be manipulated, leading to inaccurate assessments of performance. Additionally, focusing too much on metrics can lead to a lack of innovation and creativity, as managers prioritize meeting targets over exploring new ideas.
In conclusion, the phrase What Gets Measured Gets Managed highlights the importance of measuring performance in any organization. By measuring performance, managers can set benchmarks and goals for improvement, track progress, and identify areas for improvement. While there are limitations to measuring performance, the benefits of doing so far outweigh the drawbacks. Therefore, organizations should focus on measuring performance to improve their overall performance and achieve their goals.
- Anton Crowley, host of Ecommerce Lifestyle podcast
- Recording while driving to office, excited about hitting a big milestone
The Importance of Goal Tracking:
- Quote: What gets measured gets managed
- Applies to all areas of life, including business
- Need clear objectives and a way to measure progress
- Team-based incentive program
- Use of dashboards and tracking sheets
- Example of Google Sheets and daily tracking
- Book recommendation: Traction by Gino Wickman
- Importance of keeping everyone on the team informed
- Success requires clear goals and tracking progress
- Importance of simplicity and focus
- Encourages feedback and suggestions for future episodes
- Thanks for listening to Ecommerce Lifestyle podcast
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