Car Accident, KPIs & Metrics
On a calm morning in October 2022, I and my family were driving to Melbourne, and we were very excited that we were close to the destination. Our excitement soon turned into despair when our car hit the Kangaroo on Hume Highway (video link: https://www.facebook.com/100088137715114/videos/1176174599919815). “Kangaroo”, I shouted, not knowing what was going around. The Kangaroo hit the front of my car and the bonnet was wide open and covered my vision. I was driving blind with the only tool I had for my navigation was the car dashboard and the GPS. It took me a good 2 seconds to process the incident and once I realized the situation, I responded. I slammed the brake, while constantly monitoring the GPS for the course guidance, turned on the hazard light, and parked safely on the side of the road while my bonnet was still covering my vision. We were unharmed because I controlled the car with the feedback from the dashboard. I glanced over my dashboard again to see if my car health was in good condition and if it was safe for us to stay inside the car. All the dashboard readings were within the safe zone. I got off, assessed the situation, and called the tow truck. I was very fortunate to have all the car information from the dashboard that helped me to adjust my driving situation when I did not have a magnificent sight of what was ahead.
With a few hours to kill at the McDonald’s while I was figuring out how to get the family home safely, I had some time to self-reflect on the situation. I recalled, one of my mentors explained to me that KPIs and metrics are the dashboards that help you navigate the business like the way a car dashboard helps you drive safely. This was the moment where I could correlate KPIs, metrics, and their importance in business, like how the car dashboard played a key role today. As much as I hated metrics and KPIs as a technical expert, I loved them as the business leader. I could comfortably drive the business unit assessing the team’s efficiency (like speedo), the amount of enthusiasm in the team (fuel in the tank), and the customer temperature (like a car temperature). It also provided me with a warning if the team is running low on energy (like car oil) and if it’s time to recharge (an oil change).
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The car dashboard provided KPIs and metrics that helped me understand the performance of my car to decide my inputs to stay on course while driving. Similarly, in business, those parameters helps leaders make an informed decision and drive the business in the desired direction while navigating business challenges. Without the KPI and metrics, the business is running blind, like how I was driving blind for 2 seconds after an accident. Just as I needed to monitor and adjust my speed, direction, and course change to stay on track, a business needs to track and adjust its performance indicators, such as customer satisfaction and revenue growth, so the business is on the right track and remain competitive.
As a small business owner, it is rather scary than intuitive to implement KPIs and metrics in the business, but I believe it’s very important to know your business ‘driving conditions’ to ensure that your business is on the right track before it runs off the course.