How to set the right metrics

Every organisation should set objectives to measure the performance of their business, but all too often, businesses set objectives that drive the wrong behaviours or set objectives that cannot be influenced or measured.

Targets drive behaviours. Some may go to great lengths just to hit a target and upset a few people along the way in order to achieve it. This is not beneficial for them, the organisation, and potentially your customers. Ensure your targets measure the ‘what’ – the objective, but also the ‘how’ – how you deliver it.

It is also crucial to focus on the deliverables you can influence and measure rather than those you can’t. Many brands and products success are heavily influenced by external factors. For example, despite Pimms creating fantastic marketing around ‘Pimms o’clock’ sales are at their peak in the summer when (and if) the sun is shining. There are just some things that are out of your control. The best approach is to plan and set targets that consider these factors and mitigate them.

Metrics should also drive a collaborative approach across teams and organisations, so they work together to achieve the same goals, otherwise you create silos of working which is unproductive. Sales targets should be aligned to marketing for example. This encourages team working and everyone striving for the same goals. Sales targets need to avoid being one dimensional based on volume and revenue, but should also support marketing targets such as driving brand awareness through in store marketing, or support supply chain with timely ordering.

We ensure a company’s metrics are not just SMART, but ‘SMARTER’. We think the ‘E’ for exciting is important especially when conveying ideas to a customer, so you engage and motivate them. They are more likely to buy into an idea if they are equally passionate about it. We also have added ‘R’ for our SMARTER objectives which stands for ‘recorded’. This may sound obvious, but so many employees can’t remember all their objectives if asked. Having them documented in an easy to understand and find format guarantees that individuals are aware of the goal and how they are progressing.

If you want to better understand how to set SMARTER objectives that you can influence and measure, contact us at: help@pureblueocean.com