Your measures of success need to change with your industry.
Read the full article at: hbr.org
Some say the definition of craziness is doing the same thing and expecting different results. While typically for individuals, the adage can apply to business.
Take metrics, for example.
“Most industries cower to a few central metrics, the yardsticks that define the winners and losers…Metrics tried and proven over years become a guide to what’s important, driving resource allocation. But these metrics can become tyrants. When things change, outmoded metrics can threaten a firm’s survival.”
“Companies in industries facing change have to change their key metrics.” The rise of online commerce forced retailers to shift focus from in-store experience to online experience metrics. The auto industry may need to shift from its “obsession” with tracking unit sales to measuring the utilization rate of vehicles as autonomous vehicles and ride-sharing schemes become more prevalent.
“Changing the ways we measure success means changing how we define success.” Wolcott offers four specific actions a company can take regularly to keep its metrics tied to what’s important.
We can help, too. Contact us to better understand how your company’s goals and employee behavior are impacted by your metrics.