Metrics can be a key tool for improving and optimizing your business, but creating and using them is not always easy. There are several pitfalls that must be avoided to get the most out of your metrics.
The first and foremost is that the metrics you create are only as good as the data you use to populate them. Bad data in, bad data out, as the saying goes. Metrics can only be effective if the data they are based on is up-to-date and accurate. A modern, agile ERP system eliminates this concern as data is always available and up-to-date, ensuring maximum employee accuracy and customer satisfaction.
Another key consideration is ensuring that you, and your team, all know your goals. If metrics aren’t aligned with the company’s vision and goals, they will not only be less effective, they could possibly be counter-productive. Ensuring strategic goals are being served by the metrics you are collecting and tracking is vital.
Businesses should also be mindful of whether the metrics they are tracking are future based or past based. Some data lends it self to analyzing past trends, other is for forecasting future ones. The most effective businesses use a mixture of lagging and leading indicators when utilizing metrics.
It can be difficult to gauge performance in a vacuum, even with the most detailed metrics available. Many companies try to judge their success (or lack of success) based solely on their own metrics and data. This incomplete picture can often lead to poor understanding of their real place within their industry’s ecosystem. Forward thinking companies get a complete picture by comparing their metrics against those of their peers in comparable positions. Utilizing independent studies and organizations to vet, verify, and compare metrics and performance numbers is a key step to correctly utilizing metrics.
By keeping these potential pitfalls in mind, and using a modern, agile ERP platform such as Prime FoodService Software, businesses of all types can harness the incredible power of metrics to power and propel their business.