Why is it so important to continually measure and review operational performance?
What you measure, you can control! What you don’t, you can’t. Measuring the key activities and numbers in the business, be they financial, customer satisfaction, operational measures (such as sales conversion or leads generated, or production utilisation) or staff absenteeism, allows you, the business owner and manager, to better understand and manage the business’ performance. This also allows you to set improvement goals, and activities to achieve higher revenues and growth. Your competition is not standing still…. Neither should you!
How does your business measure up?
Review your business against this best practice benchmark now
BEST PRACTICE BENCHMARK: We objectively review our operational performance on a monthly and yearly basis, adjusting activity to maintain or improve performance. #operations
Here’s a checklist to help you determine how well your business meets this benchmark.
- We can check at any time our profit, sales, expenses, cash flow and operational measures.
- We review our financial and operational business performance at least monthly.
- We have a set of key performance indicators that our management and staff use to better understand and track how we’re doing.
- We monitor all our processes and systems, not just the operational production processes: our planning, human resources, finance, management, marketing, sales and customer service.
- We measure and track the quality of the outputs of our production processes in terms of unit costs, errors and defects rate, throughput, production utilisation.
- We also measure and track the quality of our products and services by the way customers perceive them, to ensure ongoing customer loyalty and sales.
- We have a systematic focus on continuous improvement (eg LEAN), and hold regular review meetings.
- We benchmark our systems against best practice.
About the SMART-Connect best practice operations advisor
Business Advisor and Coach
Director and Principal Advisor Nabil Salameh is no stranger to business. He is an accredited business coach and a qualified engineer. Having over 34 years of both corporate and small business experience, and having run a family business employing 32 staff, has given him the intimate understanding of what businesses need to be successful.
Nabil is passionate about helping business owners maximise the value of their business on exit. With a record number of businesses for sale across Australia, and an oversupply of baby boomer business owners wanting and desperate to sell their businesses, there’s nowhere near enough buyers, let alone ones prepared to pay the sum wanted. Nabil specialises in Succession and Exit Planning to achieve maximum business value and peace of mind for funding for the next stage of their life journey.