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Numbers Trump Emotions
Dear Reader
A vital ingredient of the success of running your business is how you handle your data in the business.
It's very easy for, especially an entrepreneurial company or a family-oriented company, to run the company on feelings and egos and subjective emotions; and that makes for a very complicated and a difficult environment to work in. When people's emotions are running wild, when egos get in the way, one doesn't focus on the business at hand. That's not where the focus is.
So in EOS we immediately start working on the data component, and we make sure that the focus is to get facts and figures and objective information - so that we focus on these facts and figures, these numbers that will drive the company forward.
We do this with a couple of tools. The most important one is the scorecard. The scorecard is a simplification of all these numbers in the business, to bring it all onto one page. We want to see about five to fifteen measurables - numbers that we measure in the business that will tell us about the performance of the business. All of these are measured and reported on a weekly basis.
But what we do have too, is that we have a threshold for each: what is the goal that we want to achieve with that particular number? Does it have to be above a certain number, or does it have to be below something? What is it that we measure?
Then also very important, who is responsible for that number? Who's driving that number? Who is bringing that number to the weekly meeting and reporting back on that number? So that brings the accountability to that number as well.
And we work hard to make sure that everyone in the company eventually has at least one number that they're driving. Because by driving that number, by helping the company going forward, each person then has a purpose in the company and what they're bringing to the rest. That's really inspirational and it helps them to feel part of the business and take it forward, because they can see how they contribute to the success of the business.
So there you have it. If you're running your business on feelings, on egos and on emotions, think again. There's a better life for you.
Speak to me if you want to know more and I'll do a complimentary 90 minute meeting with you and your leadership team to tell you all about this whole system. I can't do it in 3 minutes, I can do it in 90 minutes.
Have a great week.
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