As Lord Kelvin said in the 1800s “If you can not measure it, you can not improve it.”
Every good business tracks sales, spend, return on investment, staff turnover, etc., and use these metrics for making investments or expansion strategies. It’s the people side of the business that is often considered unmeasurable.
People are the lifeblood of all businesses. If your business can attract the right competencies, manage talent effectively, use capacity efficiently, and retain employees, it is setting itself up for long-term success. Measuring all the ‘soft’ metrics; like potential, culture and collective performance of your people that will ensure that success.
Employees have the potential to deliver a certain level of performance; we call this ‘performance potential’. This potential includes their total capacity for commitment, effort, creativity and innovation. Data shows that most people within organisations are operating at between 50% and 70% of their full potential. That is a significant under-utilisation of talent. Using data analytics, you can measure how much we’re exploiting the team’s potential and how much of it is left untapped. To have the team performing less than their full potential is a waste of the business’ time, money and resources as well as talent, energy and ideas.
Every business has its own unique culture. You are looking at the team’s natural energy and creativity, its overall behavioural dynamics, and how that adds to task performance and decision making. If you have a team with a negative culture, it will impact the social healthof the team. Measuring the social health and team dynamics will identify how to improve the culture and create a better working environment for the whole team.
3. Collective Performance
Internal collaboration should drive innovation and agility. Internal collaboration refers to the effectiveness of internal meetings, communications methods, and how they add or detract value from the business. Return on collaboration is a measurement of how different means of internal collaboration and teamwork impact business performance and innovation, as well as employee engagement and well-being.
W regularly e see examples of organisations, business units and teams that are not fully maximising the talents, skills and abilities of their people. This is so common that many of our clients are at a point where they are willing to accept that this is the way things are.
Yet we see that using the Growth Pit Stop methodology allows people in teams to engage in a process known as ‘cognitive reframing’ that allows them to begin challenging that idea at both a personal and team level. It also has a way of analysing the potential savings to be realised by cutting unnecessary internal meetings and other forms of collaboration waste.
Measuring these three areas and learning where you can improve will have an impact on performance, innovation and growth of your business. It will also have an effect on engagement, growth and well-being of the individuals.