A Business Performance Management Best Practice Would Be To Establish Achievable Goals
Yes without question a business performance management best practice is to establish achievable goals! This should go without saying but you can’t imagine how many business owners and/or management officials blaze ahead without understanding what their ultimate goals is and how they are going to get there. Oh yes they may tell you that their ultimate goal is to sell or make as many widgets as possible but they forget about the very critical minor details like what are the steps along the way that make that possible.
Business Performance Management Best Practice – Set Smaller Goals!
As an example if you are playing football the ultimate goal is to score a touchdown as many times as you can during the game. We see it all the time in professional football when someone scores a touchdown they do their dances and celebrations in the end zone. That’s great but the hard work that produces that outcome is in each play that takes that team down the field. So in business it is no different except we don’t necessarily have fifty thousand people watching and cheering every time we do something.
So if we are making widgets we need to examine in detail every single step involved in making those widgets. But we can’t stop there. We must also look at each part and where do we get those parts. Can we get the same part(s) cheaper without losing any quality? If there is shipping involved can we get them closer and the shipping is less expensive. The point is look at every single step involved in making a widget. When you look at those steps set an achievable goal for each one of them. These goals will continually be changing as you continue to examine where you are at.
Business Performance Management Best Practice – Examples of Smaller Goals!
So let’s dig in a little bit deeper so that you have a clearer understanding of what I am speaking about. As an example let’s say that there are four stages that involves four different employees doing or assembling the widget along the way to its completion. At one of the stations where an employee is assembling their portion of the widget they have five items that they attach to the widget. The principle to this exercise is to continually ask the question why? Why is the station located where it is? Why do we attach those five items at this stage? Why do we attach them in the order that we do? Why do we use the tools/equipment that we use to attach them? Keep asking the question why until you can’t come up with a good reason why you do it that way and then can it be changed in a way that will improve the process.
Yes the goals you set are the key to improving each process and overall improving your productivity. If you fail to set very small goals that lead to larger and then an overall ultimate goal you can assure yourself that you will never achieve what you hope to achieve. Oh yes, once in a while you may get lucky but you won’t know why you got lucky or worse yet you will believe you do and sooner or later it will end in a disaster.