“Not everything that can be counted counts, and not everything that counts can be counted.”
Albert Einstein
A few weeks ago I was invited to host an amazing innovation summit in Sydney and not surprisingly, many of the presentations were focusing on the importance of data.
After about the fifth presentation discussing ‘data-driven decisions’, my mind started to wander and wonder whether we are possibly measuring the wrong numbers.
What gets measured, gets your attention and data is important. However here is one key metric that often gets left out.
It’s a number that may be the biggest motivator for you, your customers and your team.
Measuring the positive impact your business is making.
How many people is your company impacting? How much value is your business adding?
At Basic Bananas one of our key metrics is the number of business owners we get to help every single week through our marketing workshops and online programs.
At Oceanlovers one of our key metrics is how much rubbish we get to retrieve from the beaches to save a few seahorses, dolphins, Nemo and his friends.
Data is crucial and in a numbers jungle it can be easy to lose sight of what really matters.
A few years ago we realised that we are measuring too many numbers in our businesses and needed to narrow it down to critical numbers so we can re-focus on what really matters.
Measuring the right numbers is like nurturing a garden. You pick and choose what you want to grow and then focus on just that. If you have too many varieties, it gets messy pretty quickly. I’d like a garden full of delicious blueberries and strawberries please.
Input vs Results
Something else I quickly wanted to share with you is the concept of measuring input vs outcomes. Looking at your outcomes or results can be a lot more motivating than only measuring the input. Let me give you an example of this, unrelated to business.
Calorie counting has become a bit of a fashion in the developing world, or should I say an obsession.
Calories are input. Wouldn’t it be more exciting to measure the outcome of changing our eating habits; how we are feeling on a daily basis, our energy levels, our overall wellbeing.
Someone once told me that Coke Zero has zero calories and hence he can drink as many Coke Zeros as he wishes on his journey to enhancing his health. I don’t know much about calories, but I don’t think Coke Zero will bring about an amazing outcome.
My favourite example of measuring the outcome is Bhutan, a country that is measuring not only their Gross National Product, but also the output of a thriving economy, Gross National Happiness an index to measure the collective happiness of a nation.
What’s the point of a rich nation with sad humans in it? Exactly, there is no point. What are the outcomes or results you would like to see in your business?
Now is a great time to re-visit your numbers, to determine your most critical ones and most importantly to add an impact number that motivates you and your team.
Here is to spreadsheets and dashboards that are a whole lot more exciting!
And remember to create ripple effects everywhere you go, it’s a great way to live!
Franziska