When Something is Measured -- it Improves

In the 1930's research was conducted which determined that what is measured will improve. This became known as the Hawthorne Effect and it found that when something is measured it improves, but when it is measured and reported, it improves exponentially. By reporting the information, accountability is instantly incorporated into the measurement.

At first, it can be somewhat uncomfortable or cumbersome to start tracking results. Many times the accuracy of the information is not completely accurate. It takes some time to get it right and make the tracking process efficient. But, over time it becomes easier and the information more reliable. The important thing is to stay with it and don't stop.

What should you track? The answer is simple -- anything that you want to improve! Track anything that has an impact on the efficiency, profitability, service quality or systematization of your business. Determine what is important for you to understand in order to make your business a better business and put the tracking systems in place.

Be sure to use the information though. Tracking the information and then keeping it secret or just putting it in a file somewhere won't maximize your efforts. Report it to anyone and everyone that will benefit from knowing it and can help you improve the area being tracked. By measuring how well you do things in your business you will be able to build a stronger, more efficient and healthier business. Many of the items you track may not directly show up on the bottom line of your financial statements, but the impact will ultimately make the business better and a healthily, efficient and growing business is essential to improving profits and happiness in your business.

Don't hesitate to get an outside perspective on what and how to track all the important things in your business. An outsider perspective can be priceless when it comes to working on the health of your business. As business coaches, my partner Ralph Berge and I have the experience to help you with this. Give us a call and we will be happy to help.