Performance Measurement Defined for Small Businesses Performance Measurement in Small Businesses The role of performance measurement in small businesses is primarily one of learning; providing the small business owner with the required information to navigate towards desired end results, as reflected in a small business’s strategy. Similar to the principle used by ants, who leave pheromone trails to assist each other in navigating towards the food source. Performance measurement results should travel through the small business, facilitating communication, providing a base for analysis, synthesis and ultimately decision making across all levels of the small business. If you as small business owner don’t measure …  HowRead More →

Where Performance Measurement Fits into a Small Business Integrated Performance Measurement? Performance measurement starts before your small business is in business. As indicated in the diagram below, it’s an integral part of the strategic, tactical and operational planning processes. Goals, objectives and operational targets are all measures of performance within small businesses. Measuring business performance to evaluate and control the achievement of these goals, objectives and targets are critical for small business success. The challenge facing small businesses is how to match and align performance measurement with business strategy and culture. Furthermore, the type and number of measures to use and the balance between theRead More →

“You can’t manage what you don’t measure, and what you don’t manage doesn’t get done.” – Peter F. Drucker Small Business Success Requires Small Business Performance Measurement Small Business Success requires owners to continuously evaluate business performance and take corrective actions. Sadly, with several small business owners that I have worked with, that is not the case. In some cases, small business owners worked in their business for a very long time but cannot afford to retire. In general, they perceived that the value of their business is more that it can sell for. Performance measurement helps small business owners to understand how decision-making processesRead More →

Developing Key Performance Indicators Developing Key Performance Indicators Starts at Startup The developing of key performance indicators should starts before your small business is in business. You will gain valuable insights into planning and documenting your business venture by doing it on the frontend. Developing key performance indicators (KPIs) and measuring business performance in your small business should not be complicated. Your key performance indicators (KPIs) depend on your strategic goals, business complexity and the nature of the operations. Read our blog Where Performance Measurement Fits Into a Small Business Start by measuring only those things that are important/critical for your small business success. YouRead More →