“Not everything that counts can be counted, and not everything that be counted counts.” -- William Bruce Cameron, 1963.
The world is evolving fast. There are tons of metrics for companies to reference, which often result in an explosion in available data. Under the golden age of metrics when combinations are of infinite possibility, it is always important for us to avoid a flood of information that is ineffective in boosting profit. A key performance indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs to evaluate their progress and success at reaching targets, so KPIs are critical indicators of progress toward an intended result as they provide a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most.
Here is the question – What should we focus on in this era? Or, more specifically, is KPI still the right measure for companies to adopt on the road to success?
Indeed, different industries may have different aspects to target in order to achieve higher revenue. But there is one and only fundamental thing we should never neglect – people. Everything you do, every service you provide and every product you are developing are for humans, and let’s not forget that humans are the most significant capital to every company. No matter what advanced system you have, what fascinating product you got, without manpower who are willing to utilize resources and work for the company or customers who appreciate the latest collection, everything is in vain. That is why it is important to “Keep people interested”. Create value for people that make your company worthy to spend time on, the path to raising profit will not be far.
Sometimes things can be really complicated, especially when people are not willing to communicate – admit it, you never can just blindly guess someone’s preference or requirement – so as your employees! “Keep people informed”, just lead them to the correct way, inform necessary parties that should be involved, and make sure everyone knows what to do. Effective communication is a half success as it makes sure every procedure is going smoothly.
We all understand that trust is not easy to build especially when it involves money. But it is a universal truth that one man cannot do everything on his own to build an empire. “Keep people involved”, let talented workers and reliable partners involve in your marvellous projects after considering potential risk, and perhaps things can really work out way better than you expected.
Here comes the most difficult yet rewarding approach to effective new leadership – “keep people inspired”. Inspiration awakens us to new possibilities by allowing us to transcend our ordinary experiences and limitations. Inspired individuals are reported to have a stronger drive to master their work as they know what goals they are achieving and have a clear direction on work with a positive attitude.
Perhaps it is time to stop just thinking about the traditional measure, and start reflecting on whether your people are interested, informed, involved, and inspired.