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Clearly, the size of your target depends on the size of your organisation's belief in their ability to improve things, to make change happen, to decide on what to fix and execute that decision. But you don't have to have just one target. For any performance measure, you can lay out a path into the future using a series of targets paving the way to the level of success you want.

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People typically want to run for the hills when their managers announce new stretch targets. They think of all the stretch targets in the past that fell flat, and of the frustration and angst of aiming for heights so far beyond what they can believe is possible to achieve. Out comes the cynicism about doing more with less, and busting their gut to make the boss look good. But aren't stretch targets supposed to inspire people to outperform themselves, to strive for excellence?

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Think about something you really wish could change in your business. Something that matters because it impacts its success. Is it getting more customers? Or finding more time for your dream lifestyle? Or increasing your profit margin? Or reducing the proportion of your time that's non-billable? Or finding new leads? Whatever it is, this is where measuring has a role. Measuring gives you the power to know.

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One of the most common reasons people hate their measures is not that the measure is bad. It's that the measure is the wrong one for the result they're trying to monitor. A performance area you see this happening a lot is customer service performance. There are a raft of customer related measures around these days, each with its own promise of driving business growth. But we forget something vitally important, as we too eagerly dive into debates about which is the best measure.

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It would be fabulous if we could have just one single customer related measure that told us all we need to know to build a huge, profitable and loyal customer base. But many of those measures are used wrongly. A little common sense, and taking a moment to think about the results we want relating to customers, can release us from the confusion about which customer measure is the right one, the silver bullet. Let's explore this by looking at three very popular customer measures.

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It's THE most commonly used measure of customer performance but Customer Satisfaction is also one of the most widely mis-used measures of customer performance as well. Too often it's seen as the panacea for all manner of things, including a predictor of business growth, customer loyalty, customer lifetime value and market share. And what's more, managers often complain that it's a hard measure to act on. What are you supposed to do exactly?

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There are all kinds of reasons why many organisations have performance reports that are bursting at the seams with measures that mean nothing, impact nothing or lead to nothing. Often it's because they are measures that have always been reported, or some manager wanted the measure for a project that ended years ago but it's still being reported on. Irrespective of why, this is for certain: if a measure is not informing a decision or choice, it's wasting space & time and most certainly money.

So You Reckon It’s not Measurable, Eh?
By: Stacey Barr | 01/09/2008 | Management
In business, we often talk about results like productivity, efficiency, loyalty, engagement, well-being, innovation, effectiveness, outcomes and customer value. And you're right - it's just not obvious how to measure fluffy results like these, meaningfully. But that's no excuse not to measure them! The problem is not in the measuring, it's in the fluffy way we articulate our results. You have to come at that problem of measuring the seemingly immeasurable from a different angle.