I am often accused by my colleagues of being obsessive in measuring my exercise regime. I admit to four sessions per week of mainly cycling and yes, the main focus of their comments is my use of a good quality Polar heart rate monitor (HRM to use the jargon). Oh, and I suppose I should also admit to using a Tacx ‘virtual reality’ computer trainer and ‘treadmill’ during winter too – well it avoids having to drive to the gym!
My HRM provides a range of analysis tools, including; heart rate; speed; distance; cadence; calories and power output, to name a few of those I use. It also asks how you are feeling and what the weather is like. My argument is that if you have set yourself a goal, it is important to have targets and a means of tracking performance and progress. With the software I have, I can easily monitor the numerical and graphical data for my chosen key performance indicators (KPIs). Despite the accusation, I actually only use a fraction of the capability of the software’s functionality, but this is enough to achieve my own goals.
In business, we have the same options and like with exercise regimes, there are varying degrees of success depending on what is used and how it is applied. Most businesses will look at the financial data, turnover; P&L; cashflow; ROI and they are right to do so. However, they should also be looking more widely at some of the non financial measures too. The ‘balanced scorecard’ is a good basis for doing so, but it doesn’t contain a single solution for all businesses. However, it will provide a basis for managers to look at how their customers see them, how effective and efficient they are from an internal/operational perspective, how good they are at innovation, differentiation and learning and of course the accountants favourite of the financial measures I referred to above. How a business focuses and uses these measures is dependant on their own strategy and goals. Managers need to constantly review performance and it can sometimes be difficult for them to see their business in the same way as an independent observer looking in with a ‘fresh pair of eyes’. As we all know, if you don’t know where you are going and how to get there, any route will do! Clear goals and a wider perspective of what is important to the business can help identify and maintain the key differentiators that make a business succeed.
So, am I obsessive about analysis? Well, one of my most vocal colleagues now has a HRM and used it to achieve his own goals and targets, so I rest my case!
