Measure is the starting point of effective financial management in your business because, as I’ve shared in other episodes, what gets measured gets managed. Measurement is the fundamental foundation of the entire cycle of business financial management. 

I look at that cycle as a circle, where each part points to another in a closed loop. You continuously do it, and when you implement this continuous process in your business you can continue to uplevel the business. 

So what does measure actually mean? It can take a lot of forms but the bottom line is you want to measure what’s important in your business – and that may not be the same as what’s important to someone else’s business. Your key metrics will be different based on the type of business you have, the industry you’re in, and your unique strategic plan. 

What’s key is putting measurements in place as your benchmarks and putting them in a clear dashboard format that you look at frequently. They need to be where you can see them and communicate about them. How often do you need to have your eye on any particular number? Is it once per shift, per day, per week, per month, per payroll cycle? The correct frequency depends on when you figure out those numbers are going sideways, because as soon as you’re able to determine they’re going sideways, you need to take action. 

These aren’t just measurements for measurements’ sake. These are actionable numbers. Don’t measure just to measure, measure what’s actually important, gather those numbers, and put them on some kind of dashboard. After you’ve determined what’s important to you and the frequency of measuring those numbers, you’re going to need to communicate those to the organization effectively.

Communicating key data - and what’s most important - to your team is critical. You want to let people know that the better you are as a team, the better you are as a company. There’s power in communicating what matters and the success of your company without divulging, of course, any personal numbers you’re not comfortable sharing. Communicate the data that’s important to the performance of your overall company and your teams because when your teams want to impact the business and want to be part of something successful. You can help them by communicating what’s important and updating them on the numbers that matter.

Listen to “TurboCharge Your Business” on the International Business Growth Network or wherever you get podcasts and gain access to even more great resources at https://turboexecs.com/turbocharge. 

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