Measuring What Matters
Every business and every individual must measure what matters. When talking to companies and business students at Johnson County Community College it is emphasized that food cost percentage and labor costs are equally important. A company can easily lower food costs by throwing labor at it and a company can lower labor costs by throwing convenience items at it. It is vital that an organization make certain that the measurement adds value and is accurate.
When I started working out at LiveFit doing personal training (which I recommend by the way), I had hoped to reduce my weight from 175 pounds to somewhere around 165 or 170. I thought, incorrectly, that this would be ideal. However, what I soon discovered is that when someone works out, they are more likely to gain weight and lose girth. After nearly a year this is what has happened. Not only did I not lose weight I have gained nearly 10 pounds, lost three pant sizes, and increased my upper body muscle mass. I am not sharing this as a point of narcissism, but to reiterate that you must know what you are measuring and why.
Make certain that the measurement matters and it is going to help you accomplish what you set out to do. This has implications for the manager who is being compensated with lower labor costs, but in the end increasing recruiting costs. The manager who is reducing employee complaints through fear. The sales agent that is increasing bookings by sacrificing operations.
I am certain that if you apply this problem-solving model to the underlying cause of the real problem you will discover other measurements that need tweaking just like my measurement of success at the gym has been recalibrated.
“Reevaluate a metric in your life. Set a more reasonable or appropriate goal.”
