organizational culture

Building Measurement Into Your Culture

Measurement is part of the culture of an excellent organization.  Excellence requires having a standard so you know what you want to be good at.  Measurement tells you whether you are. Clear measures help to motivate and guide teams of individuals towards positive outcomes because they provide an objective indicator of progress forward.  An environment with performance measures provides individuals with consistent and clear feedback on their performance.  In fact, learning is rooted in measuring. 

To accelerate learning, organizations should work to have every person in the organization have at least two to three key measures that will help them improve in their roles.

Here are some measures that you may not have considered before:

  • Administrative Expense as % of Revenue

  • Acquisition Cost Per New Customer

  • Training Expense as % of Revenue

  • Lifetime Value of a Customer

  • Employee Satisfaction

  • Revenue per Sales & Marketing Employee

  • Support Calls per Customer

  • Project Estimate per Actual Variance

What other measurements have you implemented?

Culture Drives Performance Management

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Every group of people that spend time together whether in a business, non-profit or family, has a culture.  The culture of an organization is something you can feel as soon as you enter the door.  It’s something your senses pick up from the clues given off by groups of people working together. 

Much has been written about how to establish the β€˜right’ culture for your business.  Many organizations focus on establishing a creative culture with funky dΓ©cor and opportunities to play games to keep a light, festive feeling.  Other companies work hard to establish a culture of dependability and reliability, and opt for a subdued conservative culture to communicate longevity and trust.

It’s the sense of hearing however, that will tell the story of an organization’s performance management culture.  Listen to what people say about their role in the organization and you will quickly identify a culture of high performance.  When you hear that employees have clear expectations, measure their results, and meet on a regular basis to monitor progress, you know there’s a culture of performance management.

Ask individuals in your company to describe your culture, and listen to what they say.  If they offer descriptions such as; fast paced, changing, chaotic, and confusing, it’s time to be more deliberate about creating a culture for performance management.