This week I want to share with you how to set and track the number one metric that you and your leadership team and your entire company need to be laser-focused on to make some significant gains this quarter.
Have you and your leadership team ever had a situation where you set a priority for the quarter and you get going on it but then get a bit de-focused and then the quarter goes by so quickly and then you have that same priority unaccomplished and you set it for the next quarter?
It happens, right?
How does that happen that we end up having to push priorities out like that?
Well, part of it is there’s a lot going on in business. But part of is that we get de-focused.
We don’t have something we’re completely focused in on to make sure we know if we’re making progress or not. And in the absence of that indicator, we just kind of react.
So what we need is something that’s called the critical number.
This is a metric or a value that’s going to tell you if you’re on track to achieving your priority.
Now, even companies that do have a critical number can sometimes get off in the weeds for a couple of different reasons.
The one is they don’t have an effective way to collect the data that feeds into that critical number. They don’t know where to get it.
The second is that if they are collecting the data, it’s not being discussed on a regular basis.
And the third reason is that even if that number’s being reviewed, we may not have an action plan that’s happening on a regular cadence to make improvements towards achieving that number, to getting back on track or if we’re ahead, doing more of what’s already working.
So this critical number keeps everyone on the leadership team and everyone in the company focused.
Everybody should know what that number is.
Let me give you an example.
Let’s say, for instance, you want to grow your sales by 5% over this next quarter. Okay, that would be your critical number.
But what we have to remember is there’s other numbers too that lead to that critical number being achieved, right? You don’t just all of a sudden have more sales.
There’s actions that have to happen that lead into that revenue lift. So for instance, marketing, right? We need to market to get leads in.
When the leads come in, we need the sales department to be able to close those leads.
What are the things that we need to measure in addition to the lagging indicator of the sales increase, we need to measure the leading indicators of the marketing and sales activity.
Number of reach-outs for the marketing team, number of inbound leads received, number of salesperson follow-ups, number of quotes, number of closed deals, and then the service delivery actually happening so you can close those orders.
You have your critical number and then you have your dashboard of the other numbers that are all going to lead to that critical number occurring.
We’re going to be talking about dashboards in our next video.
But in the meantime, if you’re not sure how to set your critical number or you find that you and your team sometimes get de-focused and get pulled into the weeds, hit me up for a conversation.
Happy to have a chat with you and help you determine what your priorities and your critical number should be, how to collect it, and how to keep that number alive so everyone on the team can stay focused, taking action and achieving your priority for the quarter.
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