How do you know that your business is successful? The short answer: You need goals, or milestones, for each month, quarter, and year. Then you have to measure the data to know if you’re meeting the goals.
Without relevant and accurate data, you cannot solve problems and make decisions that keep you moving forward. Eventually, the practice’s productivity and profit languish as you continue NOT to pay attention to the numbers.
As Peter Drucker and Gino Wickman–both famous business authors and speakers–have pointed out, that which gets measured gets improved. To get on track with data, here’s where to start:
- Identify five to 15 high-level numbers for the practice.
- Develop a dashboard to track them.
Identify What’s Most Important
To identify the numbers that you should be tracking, meet with your leadership team and:
- Brainstorm and list the major numbers you need to track.
- List who is accountable for each number.
- Decide on a weekly goal for each category.
- Assign someone to collect the numbers each week and report them to the leadership team.
- Meet at least twice a month to monitor the data together.
Common high-level numbers include weekly revenue, new clients, number of new referring DVMs, number of referring DVM contacts, payroll numbers, drug and supply costs, and client-service ratings.
Create Your Dashboard
The dashboard–also known as a scorecard–is the list of the high-level numbers you chose. It tells you at a glance how your business is doing. Your dashboard might look something like this:
As Gino Wickman points out in his book, Traction, “Your leadership team will become more proactive at solving problems because you’ll have hard data that not only points out current problems but also predicts future ones.” Data matters because it takes the subjective quality out of your work and turns it into tangibles. Without it, you can’t achieve your vision.
This article is adapted from content in Shawn McVey’s presentation titled, “Pathway Planning: How to Get Traction.” Book Shawn today for a one-, two-, or three-day version of this presentation to learn a revolutionary, sustainable way to run your business! Contact Cindy Oliphant at 888-759-7191 or by email.