In the fast-paced world of SMEs, business growth is the usually the ultimate goal. But how can you achieve rapid expansion if you are not tracking the progress of the team and the business regularly. You can’t. The answer lies in a simple adage: “What gets measured, gets managed.”
The power of measurement for business growth
Measurement is the compass that guides your journey towards success. By quantifying your goals, you gain insights into your business’s performance. Measures like revenue growth, customer acquisition cost, cash reserves and conversion ratio offer a clear picture of where you stand. The act of measuring forces you to pay attention to the details that matter most.
Translating measurement into action
Once you’ve identified what needs to be measured, the next step is to manage based on those measurements. Regularly reviewing your measures enables you to track progress and make informed management decisions. If you’re not hitting your business growth targets, you should adjust your strategies accordingly. Don’t reduce your targets. For instance, if customer acquisition costs are too high, you might focus on refining your marketing tactics or enhancing customer retention.
Cultivating a culture of accountability
Measurement should also foster a culture of accountability within your team. When everyone knows that their performance will be quantified, they’re more likely to take ownership of their responsibilities and be focused. This accountability can drive efficiency, innovation, and collaboration – all of which are crucial for high growth.
In the dynamic world of SMEs, it’s easy to get distracted by new trends and opportunities. However, by focusing on the measures that truly matter, you can stay on track. It’s not about doing everything, but about doing the right things that drive growth. Quality not quantity, right?
Adapting and evolving
Remember that measurement isn’t static. As your business evolves, so should your measures. Keep re-evaluating your goals and adjusting your measurements to align with your changing priorities. This flexibility ensures that you’re always managing for the outcomes you seek.
For high growth SMEs, the adage, “What gets measured, gets managed” holds a wealth of wisdom. Measurement empowers you to make informed decisions, fosters accountability, and keeps your strategies on target. Embrace the power of measuring and watch your business not only grow, but thrive in the competitive landscape.
Every business strategy we develop with a client at Tendo has a set of bespoke BGIs (Business Growth Indicators) and targets against them every month, for the next 12-24 months. These are tracked and reviewed monthly and then strategies adjusted. It is fundamental to sustained and profitable growth.
Do you measure and manage in your business?