When we have management focused on the ratio Phone Number List rather than EBIT we have them focused on something not entirely aligned with our investors. When I hear a business unit President or CEO describe a business as a 15% business I know Phone Number List that cascades through the management team as a company led by the ratios not by the earnings. My advice is to use KPIs to measure achievement of goals cascaded through the Phone Number List organization and ratios when you are measuring your efficiency.
Keep the ratios in the boardroom and with investors. Keep the KPIs Phone Number List with your management team and cascading as far as you can in the organization where points of control exist for that KPI. We will talk in this series much more on Phone Number List setting goals, cascading goals, establishing and measuring KPIs, and aligning responsibilities in later sections. Organizations can become distracted by their KPIs and charts and lose Phone Number List focus on the actual results.
It is imperative we not get distracted by activity and Phone Number List charts and not realize bottom line impact. A few good... ideas KPIs alone lead to no growth or profit improvement. You need ideas. We can set a goal for growth with a given customer and Phone Number List measure it monthly, but without an idea it may be a waste of time. Now, perhaps your team has been idling by and not putting forth full effort. The mere setting of a goal and tracking it might stimulate extra effort and create some movement. I suspect that is not often the case and I doubt it is a sustainable Phone Number List growth strategy. Remember, you have to build on today's growth. The "work harder" strategy is a one-timer. You need an idea, preferably a few good ones.
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