The Magic of Metrics

May 9

Written By Julie Entwistle MBA, BSc (OT), BSc.

It’s true that if you want to excel at something, measure it.

Metrics. Why you Need Them

Our lives are filled with measurement. Why? Because that is how we stay on track or get back on track. It’s true that if you want to excel at something, measure it.

In business, there are Key Result Indicators and Key Performance Indicators. What’s the difference?

What are Key Result Indicators?

Key Results Indicators can be financial or non-financial. They are reported regularly on a predetermined schedule (i.e. quarterly). They are not tied to a specific activity or team. They show results only and are retroactively assessed.

Profits, customer complaints, and leads may be results indicators.

What are Key Performance Indicators?

Key Performance Indicators are nonfinancial. They are reported regularly on a predetermined schedule but are best if reported often. They focus on a single activity that is the responsibility of a specific team. They point to immediate action that is required.

Time from referral to appointment, repeat customers by service provider, and wait times may be performance indicators.

The Relationship Between Performance and Results

Performance indicators steer results, that is why performance indicators should be monitored closely before results are impacted.

Here is a practical example: You are going on a road trip. The desired results are taking a cost-effective trip and arriving at your destination on time. The performance indicators are your GPS (map and routes) and the things on your dashboard. How fast are you going? How is your fuel consumption? Are you making good time? So, to achieve your result (cost effective, arriving on time) you need to gauge how you are performing (speed, stops, etc.).

Implementing Metrics in Business

In business it is best to track results and performance by department or division. Sales, operations, service provider, outcomes, administration, etc.

Questions to Consider

1. What are the key results areas of my business? By department?

2. What the corresponding performance indicators for these results?

3. Can I delegate the compiling of results and performance indicators to someone?

4. What can we use as a dashboard for these?

5. Who can report on these?

Want to learn more? Let’s connect.

MetricsBusiness Success

Julie Entwistle MBA, BSc (OT), BSc.

Julie Entwistle is a Certified FocalPoint Business Coach and works with business owners and professional service providers.

Julie helps her clients by building their business confidence so they can run, grow, and develop legacy practices that are focused and optimally successful. Julie knows that when professional service businesses do better, their clients also benefit. She knows this because she was one! Prior to joining FocalPoint, Julie was an independent owner of her own healthcare business before successfully merging, growing, and selling the practice. As an owner Julie had her own business coach, and this was a key element in her success.

Academically, Julie has degrees in Health Studies and Gerontology and Health Science (Occupational Therapy) from the University of Waterloo and McMaster, respectively, and an MBA from Wilfrid Laurier. She attended Queens University as a part-time Doctorate student prior to discontinuing her studies in 2023. Julie is also a Chartered Director and has Board and governance experience.

Julie grew up in a franchise family, so business is in her DNA. She has raised four daughters who are off writing their own stories as young adults. Julie is active and fit with a black belt in Karate, a competitive golf game, and enjoys many other sports. She believes in authenticity, showing kindness to all living things, and is happiest when helping others to build their own wealth and wellness.

Find Julie on LinkedIn at: linkedin.com/in/julieentwistle

https://www.businessyou.ca