Once you know what key numbers to measure in your company you then need to decide who will be responsible for them and how often the data will be reviewed, whether it’s daily, weekly, monthly, or quarterly.
The key to making these metrics work is having a good single point accountable or “SPA” person that can really dig into the different areas, rather than you simply “playing businessman” and watching the reports instead of proactively growing the business. With regular attention to metrics, you’ll be able to notice important patterns, some of which may service as warning signs or opportunities for growth.
Measurement doesn’t have to be too sophisticated; one simple thing I do to help decide what metrics to even measure is build a simple spreadsheet with columns showing the metric in question, who is responsible for it, when it will be reviewed, its status, and so forth.
Once a year I have the CEOs I mentor look and examine the frequency of the metrics they are measuring. It’s key to adjust how often you’ll review each one going forward. Did you have enough data at your fingertips this past year? Would more or less frequency for each have helped you? Make sure you answer these questions.
Remember: don’t turn this into a paper-pushing exercise or “analysis paralysis,” either. Keep it simple.