Creating an Effective Measurement System
Measurement is not arbitrary, subjective, or random. It is formal, specific, arithmetic, and predictable. It starts with the accounting department.
The most important principle in effective measurement is that the organization be able to produce the data reflecting the measurements. Measurement requires a collaboration of accounting and supervising personnel who collectively determine:
- What supervisors want measured.
- What accounting says can be measured.
The list of measurement opportunities is endless. Here are just a few to whet your appetite:
INDIVIDUAL BEST
- new accounts
- total tickets written
- total volume
- budget achievement
- percentage of goal
- sales of specific product
- sales contracts
- best volume period
TEAM BEST
- ten best profit months
- ten best sales months
- highest sales for each calendar month
- highest profit for each calendar month
- highest profit margins for each calendar month
- best day volume
These examples are only a starting point. Be creative. Ask your people for ideas. Consider all opportunities and choose among them. Many of the individual measurements also work for the team and vice versa.
Celebrate! Achievement dies in a vacuum, celebration gives it life. Don't merely record–reward. You don't have to buy a plaque each time there is a significant achievement. But acknowledge it and communicate it to the organization with excitement and pleasure.