The Missing Metric In Your Business
TRANSCRIPT AUTOMATICALLY GENERATED [00:00:00] Hey this week, we're going to talk about one of my favorite things in the business world. And where it might be missing in your business. From the moment you step into the world of entrepreneurship, one word rings louder than any other metrics. How's your sales fund on doing. Ah, the profits rolling in. Is your revenue according to plan. How your ad's performing. It's all about numbers and stats. We track everything that we think matters in our business. We're all about leads, traffic, sales, conversion, profit expenses. And let's not forget things like net promoter score and program surveys from our clients. But there's one thing we forget to track. Our people. Arguably one of the most crucial areas of our business. And they get lost in the stats shuffle. You might be shouting. No, no, Diane, I do track people. I track turnover. I track absenteeism. And that's great, but those are lagging indicators. They're only going to tell you there's a problem when it's already too late. To understand this better. Let's take a stroll down those familiar sales and marketing channels. Your monthly revenue is a classic example of a lagging indicator. You only found out if you hit your targets when the month is over. But if you know the traffic and leads and conversions, you need to reach that revenue goal. Those can become leading indicators. Warning you in advance when there's a problem. So when it comes to your team, If you're relying on lagging indicators like turnover or absenteeism. That means that when team members suddenly start leaving, it feels like a bolt from the blue. So, what is the [00:02:00] leading indicator for teams? The magic metric is team happiness or team health. Numerous studies have showed. I said, happy employees. Uh, good for business. With companies with high employee engagement showing 22% higher profitability, 21% more productivity and 37% higher sales. And three times the creativity of those unhappy counterparts. So why aren't we measuring team happiness? Well, first off, measuring a concept like happiness isn't as straightforward as crunching numbers on a spreadsheet. It's subjective and it can differ significantly between the individuals on your team. Secondly, if we measure it, we might discover that it's less than ideal. And then what do we do with it? Knowledge is only power. If you actually know what to do based off of the data. Third, if we do ask our teams. How you feeling this week on a scale from one to five. It often happens in a public setting where people are more likely to conform to the majority. The people who are unhappy might feel nervous to speak up. They might want to be seen as the negative Nelly. And if you're doing an anonymous survey, There's still the fear that you will somehow link there on. So to them, And there's a fear that there'll be repercussions. This via can be even more potent. If your team is grappling with deeper issues with in the team. People worry about being the outlier and strive to provide the answers. They believe you, the CEO want to hear. Because there's a power dynamic at play. Another hurdle is understanding what drives happiness and teams. You need to monitor the ups and downs and happiness and take action accordingly. This isn't as simple as analyzing marketing data from LinkedIn or Instagram. Despite these challenges as complex as this, all my team understanding or team's happiness level. And being able to address the causes behind any dissatisfaction is vital for your businesses. Long-term success. The potential benefits, make it a [00:04:00] crucial aspect of managing your business. Remember a happier team. Doesn't just mean more smiles on the next zoom. It's significantly boost your bottom line as well. Ready for a deeper dive on this critical topic for your business. The key people indicate a pod cost walks you through the importance of people, metrics and the scoop on how to get started. You can find firstname.lastname@example.org. Ford slash KPI, or you can click on the link in the show notes. A healthy team. Isn't just good for morale it's good for business.
If what gets measured gets managed, means what gets missed goes unnoticed – usually until it’s too late.
In This Episode
- The metric you need but probably don’t track
- Lagging v leading indicators
- The challenges with this metric
- And why you should measure it anyway
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The information contained above is provided for information purposes only. The contents of this podcast episode and article are not intended to amount to advice and you should not rely on any of the contents of this article or episode. Professional advice should be obtained before taking or refraining from taking any action as a result of the contents of this article. Diane Mayor disclaims all liability and responsibility arising from any reliance placed on any of the contents of this article.