Measure and Communicate Your Financial Five

How do you measure your results?

For those of us in sales, the answer is simple (yet probably incomplete) - revenue. But there's more.

For those of us in operations the answer is also easy (and also incomplete) - reducing expenses. That probably includes doing what you do faster, better, and cheaper.

Whatever your job, and in whatever field - for profit or not-for-profit, your organization is directly impacted by five key measures. Five financial levers that determine the health or struggles of your team.

Revenue - the money you bring in. Gloriously, this number is unlimited.

Expenses - managing the money that you spend to stay in existence and produce what you do.

Customer Happiness - more than satisfaction the best organizations determine how they can delight their customers and bring joy into their lives. What better way to create repeat business?

Team Member Happiness - because happy team members are productive team members and tend to stay with your team much longer. Also, it just feels much better.

Compliance -- obeying the law, following the rules of your governing bodies, staying ethical and true to your organization's values.

Five Financial measures that any high performance leader must pay attention to and determine how the team will deliver on the positive side of those measures.

What's your team's biggest impact?

Do they know? Are you telling your team what to focus on?

It's easy to measure hundreds of things. We live in a time of big data, plentiful data, detailed data. We can measure anything. Are you measure the right things? Are you measuring -- and communicating to your team -- how you are doing on the financial five?

-- Douglas Brent Smith

Front Range Leadership: Fast, Affordable Leadership Training

Comments

One Kind of Choice

It is not always the answer, but surprisingly often it is: It's easier to hire a motivated worker than it is to motivate an unmotivated one. That's not the end of the story. It could be great hiring advice though. Whatever the technical skills are for people you are interviewing to hire, be sure to ask some questions about motivation that can't be answered with a yes or no. Questions like: When were you the most motivated in your life? What kinds of work motivate you? What's your approach to a work day when for one reason or another you don't feel very motivated? If you had been here for one week, what would we see that shows us how motivated you are? Start there, and follow-up with more questions. Give each candidate time to convince you whether or not they will bring motivation to your organization. You can teach people almost anything, but it's always easier if they are already motivated. -- doug smith

All Edge in Moderation

I once had a boss who, during my performance evaluation, told me that I was doing a good job as a leader but that I needed to develop more of an edge. I wasn't quite assertive enough. She was concerned that people might take advantage of me. I worked on my edge as a result. I sharpened it thru steady practice. I had an edge to end all edges. At the next evaluation, what do you think she suggested? "You need to dial that edge down a bit," she laughed. It's not either/or. Assertiveness is valuable and necessary. Aggression, not so much. You don't have to dull your edge -- just don't cut yourself with it. -- doug smith

Lead with Compassion

Does your team know that you care about them? How do they know? Is it from your flexibility? Is it from your discipline? Is it from the time that you take to talk with each and every one of them on a regular basis? Times are tough for many team members. They are wrestling with issues that we don't even know about, plus some issues that we DO know about. How leaders respond makes the difference between a functional team and a dysfunctional one. Go for the functional, fully moving forward team that delivers on performance. Build trust, build relationships, spend time getting to know your team and letting them get to know you. The payoff is immense. Lead with clarity, courage, compassion, and creativity. If you don't know where to start, start with compassion. Leading with compassion builds trust. And trust propels high performance teams to success. Go for that success. You can do it. You're the boss! -- doug smith

Character Is In The Actions

Some days it's easier to preach than perform. Resist that temptation. Telling people what to do works for a little while, but eventually they are going to watch to see what YOU do. Character, no matter how it is presented verbally, is revealed in action. Kindness is shown by helping. Courage is demonstrated by standing down an evil force or intention. Creativity is demonstrated in the art created, not the art criticized. I've sometimes fallen into the temptation to preach. It comes easy. Opinions just roll off my tongue. But, I'm working on that. Preaching is easy. Performing takes work. Practice build character. Do the practice. -- doug smith

It's More Than Talk

Every conversation is an opportunity to make someone's life better. Take the chance. -- doug smith

Try Not Lying

High performance leaders communicate without lying. That's harder than it sounds. So hard, that hardly anyone ever does it. -- doug smith

Something Other Than Games?

If you turn the system into a game people will game the system. Competition isn't the only way to achieve excellence. What if you could find a way that didn't also bring the side-effects? -- doug smith

What to Blame

It's better to blame the product than it is to blame the customer because you cannot fix the customer. -- doug smith

Show Integrity

The goals we seek bring a lot of pull to them. We get wrapped in them. It's useful and it's powerful when we care about our goals so much that they propel us forward and keep us working even when we're tired, beyond the boundaries of our usual limitations. But they should not take us beyond the boundaries of our usual values. They should not trick us into bending the rules just because the rules are in the way. Truly high performance leaders of character who are focused, and centered, and noble maintain integrity. No cheating is ever worth the outcome. Integrity is so rare that many people don't even recognize. If you do, be thankful. We need leaders like you. To truly understand integrity you've got to keep it. Even when it's hard. Even the lines are blurred. -- doug smith

Start With Kindness

When you start with kindness you don't have to stay there, but you probably will. It works better for others. It works better for you. If you're human, you'll probably relapse. It does take practice to stay the course. The course starts by starting. When you start with kindness, it becomes more naturally the way. High performance leadership develops from the core leadership strengths of clarity, creativity, courage, and compassion. Build one of those strengths today thru some act of kindness and the others will get stronger as well. -- doug smith

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