Are Your Business Measures Like VAR?
Football's VAR System has been in the public eye, much since its inception around the world, but unfortunately, not for its intended use! Since its opening into the Premier League fans, presenters and football players themselves have been complaining about it. It has appeared to stop the flow of the game, with its continual need to pause, in order to make a decision, or even give a decision when one may not have been called for. Some have said its taken the decision away from the referee and lines-person, whilst others say its decision has lead to games being lost unfairly and in turn cost clubs, players and the wider communities.
How does VAR causing of so much confusion, frustration and general chaos for the game of football relate to Business and Organisations today?
VAR is a measuring tool. But it doesn't matter how much you measure, if the measures aren't working, it won't work for the betterment but the opposite!
Lets have a quick look at a simple and well known measurement of VAR - The Off-Side Rule below...... and ask yourself, Is the Blue Player Offside?
According to VAR's measuring, 'Yes the Blue Player is 'Off-Side' and has an unfair advantage over the Red Player. But is this measure actually correct?
Is the Blue Player 'On-Side' and is VAR measuring unfairly here? Lets look again.....
So we see the measure of VAR here, doesn't give the whole perspective of whats going on in the game!
VAR's measuring is limited to as in diagram 1 the line of sight between the two players, but this is not totally accurate at all is it? Now we see with a full and open view that the measure also needs to be taken from the player who kicks the ball in relation to his foot to the ball being played and this measure is not included in the analysis!
Wow such a small thing but what a game changer it is!
So in relation to VAR and YOUR Business, how accurate are your measures? VAR is new and apparently advanced in measuring time and space within milliseconds of a football game. Yet despite it being 'New', 'Advanced' and 'Technological' the outputs are so very WRONG!
VAR is seemingly being made at nearly every junction and causes delays. Like VAR does your measuring hold up the flow of processes within your business? Does everything have to wait until the MD is back from holiday? Or cannot staff be 'Trusted' to have insight and good judgement on some decision making?
VAR measures but not accurately. How well do you actually measure your Business? Within the game of football millions of pounds are spent on performance of players, coaching staff, managers, grounds, even the design behind the aerodynamics of the player kits and what a waste of time if the measures are actually costing you money, not making you money? Have you ever considered that your measures could be costing you money?
Here's another example for: Retailers - Do you know that while you measure all the profit margins and returns of items have you really explored the customer journey when they bring a garment back to one of your shops? 40% of sales result in returns, but does it need to be so? What about customer contact and engagement? Do sales staff really sell at all? Now whilst there are some very wonderful staff and retailers the industry suffers still from poor customer contact. Lets ask the real questions...
How many times has a customer returned with items not fitting, not the colour and or not wanted as a gift? How much of this is measured in the item or another item being offered in exchange or a up-sale of something else? How many times is this successful? How many times is this not even offered?
And how is the customer experience with the member of staff returning the item? Positive or made to feel awful in bringing back the item? What has retail as an industry done to change these trends through measuring accurately?
How many times have we measured the customer asking the question/s: 'Hi, you don't happen to have this in a size ' ' do you?' and the Sales Assistant replies; 'Only whats out, I'm afraid'.
Don't your secret shoppers ever pick this up? and what happens to this data if they do? Clearly this loses you a sale in a market that can ill afford anymore lose!
Here's an example for Manufacturers and Service Industries: Why do we accept poor quality goods, whether they are raw materials and or finished goods and still look to sell them on to your customers?
Why aren't we measuring and protecting the customer from poor quality equipment?Why are YOU trying to make something not fit purpose fit into your processes? Why are we not measuring the quality of the materials presented to us at the start of our process?
YOU CAN'T MAKE SOMETHING STRAIGHT THAT'S ALREADY CROOKED TO BEGIN WITH!
So Measuring is important why?
How will you know where you are in your business performances?
How will you know what to change to improve?
How will you..... WAIT A 'SEC!' and ask yourselves How will WE
SURVIVE?
EXCEL?
COMPETE?
If you don't know, how can you expect anyone else to help you?
How often do we Measure? VAR seems to be at every occasion but stops the flow of the game. But How often do you measure?
Once a Year?
Once a Month?
Once a Week?
We know that all things continually change don't they? People change. We get older and have to adapt. The market changes too, with trends and additions. We even change our car every two years on average!
So why is it that Business think that they can use the same measures they have used for the past 20 years? How do you not know they are actually like a VAR to you now? Time consuming, meeting for meeting generating and actually missing the mark of what REALLY does need measuring?
So if your measuring once a year - is it actually relevant anymore?
If your measuring once a month? - is it based on the old way of measuring? Has your market changed since then? Yes? Then so will have your measures!
If your measuring weekly - why wait till the end of the week to know that, that measure doesn't work for you anymore?
And for all the above: How much did it really cost you in not knowing and measuring your business correctly according to the changes in industry, in people, in the products and the people who are new and now run your businesses?
Here's one measure that I guess no Business Measures to any great detail:
'Admin'
Did you know that Admin accounts for over 40% of Business time and yet its never measured! 40% over your turnover and company costs were lost in Admin and its just been accepted as okay?
Here's a simple calculation to consider:
8 Managers train 10 staff each on an update for compliance once a month. Your company turns over ￡70 million and employs 100 staff.
The Maths: Company Turnover to Staff Employed = each member of staff makes approx ￡336 p/hr in turnover for you.
8 Manager, training 10 staff each for an hour a month = 80 hours a month minimum
Put this into Admin Costs: ￡26k in Company charge cost in a month! (￡336 x 80hrs)