"If you can't measure it, you can't manage it."
- George Odiorne
Why are numbers important? Interesting question. I just did a Google search with that question and one answer was: "So that you can find the value of something."
One of our key phrases at By The Numbers is "Winners Know Their Numbers". Why? As I mentioned in last week's email, business demands measureable results. How else can you measure effectively except through numbers? Take your days in school as an example. If you were told you did well on a test would that satisfy you, or would you rather know that you got 100% on that test? Which means more to you? As a high achiever of course you want to know that got 100%! "Did well" is not enough and does not satisfy. Measurement without numbers is too abstract and holds no real meaning.
Now carry that concept over into business. If you have a sales rep who is bringing in a nice number of contracts, you might think that you have the best salesperson on Earth. For some reason, though, your profits don't seem to be increasing. How do you find out what's happening? By numbers! Once you start examining closer, you might see a sales rep who is bringing in a bunch of jobs just to close the deal, but the contracts are undersold or minor jobs. In fact, most of these jobs from your "best seller" might be non-profitable or even cost a loss for your business. There is no way you would know that unless you actually track the numbers.
Once you start tracking your numbers you will be able to set clearly defined goals and then measure them accordingly. But you need to know your numbers first!
Charles Coonradt compares numbers in business to scorekeeping in athletics. He says that most people don't realize they cannot win unless they keep score. In his words, "there are three types of players: one who knows he is winning; one who knows he is losing, and one who doesn't know the score." There's value in numbers, and winners know theirs!
Until next week, I wish you continued success!
Susan
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