“What gets measured gets managed.”
 
You’ve heard me say that more than once.
 
That’s because effective financial management in any business starts with one crucial element: measurement.
 
This principle is the cornerstone of the business financial management cycle, which operates like a continuous loop where each phase informs the next, leading to ongoing business improvement.
 
So, what does it mean to measure in the context of your business?
 
Measurement can take many forms, but fundamentally, you need to focus on what’s important to your specific operation. Key metrics will vary depending on your business type, industry, and strategic goals.
 
The essential step is to establish benchmarks and present them in a clear, easy-to-access dashboard format. This allows you to frequently review and communicate about these metrics.
 
How often you review—whether it’s per shift, daily, weekly, monthly, or per payroll cycle—depends on how quickly you need to act if something starts to go off the rails.
 
Measurements should be actionable, not just numbers for the sake of numbers. Identify what’s crucial, gather the relevant data, and display it on an “at-a-glance” dashboard.
 
Once you determine the vital metrics and their measurement frequency, you must effectively communicate this information to your organization.
 
Communicating key data and what’s most important to your team not only fosters a sense of teamwork but also drives company success. It helps your team understand their impact on the business and motivates them to contribute to collective success.
 
Getting all of the key pieces together for this cornerstone of your business financial management can be overwhelming.
 
Unless you team with an expert that knows what they’re doing.
 
My team is ready to help!