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| Bert is the brains of the website, he gobbles up information and then - using his number crunching mathematical formulae - he'll set you on the road to a better business future. |
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| Statistics |
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"There are three kinds of lies: Lies, damn lies and statistics" Benjamin Disraeli
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| Numbers |
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OK, so Disraeli was a politician and probably referring to the habit that some people have of representing data in a manipulative way. It just proves that spin has been around for a long time. However, don't undervalue the role that statistics provide for your organisation. After all what would be the point of lying to yourself? That's not to say it can't happen. As Warren Buffet is quoted as saying.. "At too many companies, the boss shoots the arrow of managerial performance, and then hastily paints the bulls-eye around the spot where it lands." To avoid fooling yourself or being fooled by others (inside your organisation or outside) every business needs to understand the numbers.
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| Benchmarking |
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One of the most valuable things to do for any business is to set up key performance indicators or KPIs. These are the numbers that are drawn from your organisation and measured against your internal targets or external benchmarks. They provide a temperature check on the health of your business. If they are chosen well (too many organisations forget the "key" part of the sentence and end up measuring everything) and benchmarked externally where possible, you will not only know how you are performing but also know what to do about it. There are quite a few resources available to help with your benchmarking. After all it's one thing to know what you are doing but unless you know what the competition are up to you won't know the right targets to set for your business.
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| "What gets measured gets done" |
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This is true of most organisations which use a system of objective setting as part of their performance management. Measures can provide valuable feedback to your people and also act as motivational tools in themselves. Many people have a competitive streak, but unless what they do is measured you won't be able to tap into it. Deciding on what should get measured in your organisation depends on what critical strategic and tactical goals you have for the business. Taking some time (or getting some help) to decide what they are will be a sound investment. Then automate them as much as possible and include them in your internal communication processes to help with diagnosis, understanding and alignment (see Bert's questionnaire for some smart questions on this topic).
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| Return on Investment |
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Here at Targeted Solutions we are keen on ROI measures. We are developing some sophisticated approaches to understanding ROI for small to medium sized businesses. Come back to us in the future for more information.
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| Resources |
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As a first step, check out the following sites. The government provides a wealth of data which can be used for benchmarking purposes and after all your taxes have paid for it! Use this to help set your own agenda for managing your business performance. Also check out the competition in the Times business section.
The Times Business section Top 50 SME's
The Times 50 top SMEs to work for
International benchmarking study 2004
National Statistics
National Business Statistics 2002, 2003 and 2004
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