ClickTime has tracked more than 100 million hours for small businesses and enterprise customers in over 55 countries. This is the final entry in our four-part series of year-end tips that will help guide and increase profitability in 2015.
One of the biggest mistakes among ambitious managers is identifying too many metrics. You know the forces that shape your business, so you identify all the major metrics that represent those forces. Sadly, not everyone in your company appreciates the subtlety and complexity of what you’re doing. This year, try picking just one.
It's human nature to focus on one powerful statistic: When you seek investment performance, you compare to the S&P 500 Index. In Moneyball, manager Billy Bean obsessed about his baseball players' on-base-percentage (OBP). For apartment owners, their fate is tied to their vacancy rate. For Hollywood studios, it's a movie’s opening-weekend box-office ticket sales.
When you focus sharply, you can direct all your efforts towards moving that one key number. And if you choose the right metric, optimizing that number should create a broad benefit across your business.
This year, try selecting one key indicator to emphasize. Utilization, per-employee revenue, and per-employee profit are all good choices. It's not that the other measurements don't matter; it's that a concentrated effort towards one thing may be psychologically more powerful than diffusing your team's efforts across many areas.