How to Measure Company Performance Using the Results Method

Most startups end up failing. Most writers never get published. The majority of actors rarely get a paying gig.

Yet, some succeed and enjoy unlimited success. Undoubtedly, these people and organizations work hard, but they don't work a thousand times harder than everyone else, do they?

To accurately chart progress, we need to measure performance in the workplace by the number of tasks completed and the results they bring. But how do you go about measuring outcomes in your organization?

Below are some takeaways to ensure your teams are working SMART, not just hard:

The Demystification of Productivity

Let’s face it, productivity means something different to everyone. It's also a term applied to different circumstances, and there's plenty of nuance involved when talking about it. It’s no question that the modern world places a strong emphasis on productivity as a metric of performance.

So what is the definition of productivity? It’s the measure and value of work completed in a specific amount of time – such as weekly or monthly. Essentially, it is one’s output over time. However, as a measure of performance, productivity has its weaknesses.

There are areas where a person can be highly productive in an organization, but at the same time this person can also waste more resources than their peers. That is why productivity without efficiency is an incomplete measure of performance.

These two metrics - productivity and efficiency - combined equal the most successful outcome. Yet there are other ways you can measure performance by using results as the primary unit of measure.

How to Measure Company Performance Using the Results Method

Create a Specific Notion of Success

Defining success for you and your organization is critical. Without a clear definition, measuring performance is a futile endeavor. In the past, you may have found yourself uttering the words “Results have been okay so far,” or, “The response to this campaign has been great.”

These sound like positive statements, but they are often tactics to cloak failure. Your goal should be to create a culture that thrives on specifics.

Train your teammates to spot and discard vague statements. Remember that the way to gain power in business is to always search for evidence, not vagueness. This is how you can improve right now and predict what will come in the future.

Evaluate the Key Performance Indicators (KPIs)

When establishing key performance indicators, first determine your definition of success. Second, reflect on the key questions you need to yourself and the teams. Such as, what are the goals you are trying to achieve? How can you break down the goals in a specific and measurable fashion to ensure your team can see success along the way?

Through the process, reflect on whether your teams are living up to the set goals you’ve initially specified. How long does it take to complete a project? Do the results match the expectations you have? If not, why? Creating a tracking system to identify both who is falling behind schedule and why, will dramatically improve results for long-term success.

Measuring Performance With Two-Way Visibility

Every business owner understands the importance of results and it’s their job to ensure that every level of the organization also understands those key objectives.

KPI’s are measurable ways to gauge progress for employees across organizations. When progress is visible, employees stay more engaged and motivated.

Unfortunately, it's often hard to see the progress of these objectives in real-time and it can be challenging for achievers to see short-term progress from their fruits of labor, ultimately causing a decrease in motivation.

To avoid this scenario, a two-way visibility strategy is essential. Executives will catch on to the problem before the project fails. Also, the employees can see how their efforts tie in to the company’s vision.

Help your employees understand ‘the why’ behind a work task. Make sure they’ve bought into your strategy and goals so that they feel part of the bigger vision of the company.

Believing in the Possibility of Exponential Growth

Whether you’ve just started a company, or it’s been around for decades, there’s always room for growth.

The first step is courage - I always like to tell my clients you have to dream big to start thinking big. Be bold when you are planning the vision for your business. You may need to start thinking 3-5 years out and making sure that your important but not urgent tasks are aligned with your vision. Remember, If someone tells you that your goals are unreasonable, ignore them.

Was this helpful? If you’re a business owner who needs help getting clear on their long-term vision or supporting employees to get results, I would be happy to connect with you here!