Why measuring fewer metrics will make you more successful.
We have all heard the phrase less is more. Yet in the world of sales and marketing performance, having dozens of key performance indicators (KPI) and measuring more and more seems to be what many leaders believe is the key to improved performance. Big data and measuring all that data is all the rave. So many sales and marketing leaders believe that measuring and monitoring a wide variety of performance metrics will make them more successful. The problem with this is the more you measure, the less effective you are at taking action on the metrics. The less likely you are to be exploiting the knowledge. Broad KPI focus is for unfocused people.
A tight focus on KPI and the measurement and management of the KPI allow you to quickly determine if the performance path you are following is bearing any fruit or not. Since the path is narrow, when you hit a performance issue, challenge or opportunity, you will catch it right away. You will also have the time to plan and implement a solution. When applied appropriately, focus will result in success. Conversely, focusing on the wrong things will result in disaster. Focus on where you want to go. Determine the sweet spot of KPI that you need to measure to get there and stay laser focused on them.
You will also be a lot more efficient in the process. You will spend less time collecting, reporting, reviewing, distributing and attempting to solve each and every challenge. Not to mention the overhead you will have to support. Big BI subscriptions and the people and internal costs will kill your budget. You will most likely only use 20% of the data anyway.
Recommended for YouWebcast: Growth at a Scale Up: How to Grow When You're No Longer a Startup
So, what’s the lesson here? Focus on fewer KPI. Only measure what matters. Try for only 4-5. Invest in simple, easy-to-use and affordable analytics tools that deliver only what you need. Investing in more than you need will ensure that you overspend and have little to no money left over to solve your problems or take advantage of your opportunities.
As the old saying goes, “Jack of all trades and master of none.” Having no focus and spending too much on analytics will just make you a Jack??? (you fill in the blank).