When we jump on a plane we assume that the pilot has filed the flight plan and that everything on the plane works.
We take for granted that pretty much everything is measured, even to the point where the life of component parts can be predicted with a very high degree of accuracy. We get on that plane with a belief that this is true….
Measurement is something we are doing increasingly in our personal lives too, measuring our weight to depress ourselves, the number of calories we are consuming and with the increase in smart watches some are even measuring their sleeping patterns, number of steps, calories burnt. The list goes on. We’ve come to realise in our personal lives that simply measuring outputs or results (such as our weight) is pretty much useless and just plain depressing unless we measure and control those things that are contributing to them, the ‘input measures’. For example, level of activity, the amount we eat etc. It generally holds true that if we move more and eat fewer calories we’ll lose weight…and the opposite is also true of course. Controlling the inputs means we can affect the outcome.
And yet in business many of us are still just focusing on the equivalent output figures such as turnover, profit and cash. Following the analogy, it’s very similar to looking at the scales only to find we have gained a stone in weight… I wish I knew that was happening 3 weeks ago when I was busy stuffing myself with chocolate.
Financial reports continue to be the primary tool for monitoring business performance for many of us. This is the same as trying to drive by looking through the rear view mirror. Too late to do anything about the results if we don’t like the answer.
The good news is that these days it is possible to see those input measures, i.e. the things that will cause good or bad results, much earlier, so we can take action. If we measure and control the right inputs we can be more certain it will lead to the outcomes we want such as increased margin and more usable cash.
In process industries they learnt many years ago that the more we measure and control the inputs and variables the more certain we can be in the result. In manufacturing, measuring this closely has enabled companies to move away from inspecting and scrapping bad product at the end of the cycle to never making it wrong in the first place, saving themselves both the cost of scrap and the time and material used to produce it in the first place.
If we know what to measure and control, we can be much more certain we will achieve the goals we have set ourselves. We can invest with much greater confidence that we will deliver the results and return on investment because we know all of the ins and outs of our business. We can also measure progress of those key indicators to know we are on the right track and then alter course if necessary.
Controlling the variables (inputs/process performance) means we can guarantee what will be produced. Less waste, reduced lead times (more certainty), happy customers, more profitable business (wasting less).
Afinitis Intelligence has been designed to give us (out of the box) a very comprehensive set of business measures in an easy to use format that will serve as an excellent starting point. For many businesses this will give an instant step change, allowing us to control the inputs and therefore give much greater certainty in results. It uses our existing financial and other operational data and applies thousands of calculations and comparisons using decades of experience and understanding of those input measures that drive business performance.
Leave our competitors alone in the company of lady luck, while we move forward with certainty.
To find out more about how Afinitis could help your business call 0844 542 0888 or email email@example.com to find out more and arrange a free demonstration.
www.afinitis.com Turning Business Intelligence into Business Performance
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