Now that tax time is over, and hopefully you are griping about the check you just wrote to Uncle Sam, I’ve got to ask – what numbers do you track to run your business?
This may seem so simple, but I’ve found that finding and tracking the most meaningful activities that drive sales, efficiency and results is one of the most difficult things to determine. When you can focus on the leverage points and activities that make you successful in your business, and avoid getting caught up in the unimportant but seemingly urgent activities, you start to see profits that exceed your peers.
How do I know this? I’ve met and discussed these issues with CEOs in monthly Vistage groups for over 19 years, first as a Member, then as a Chair.
We regularly share financial data, including Profit and Loss Statements, Balance Sheets, etc. We look at the Key Performance Indicators that we use to measure our progress. We share what works for us. We tease out the differentiators and focus on those. We challenge each other to keep getting better.
It turns out that the most successful companies have a laser focus on improvement in those areas that will leverage their successful and profitable practices.
My friends, it often comes down to tweaking – a little bit here, a little bit there. Not very sexy, but, oh, the profits can be super sweet.