Managing by Key Indicators

You can’t manage what you don’t measure. “Know well the condition of your flocks, and pay attention to your herds. For riches are not forever; nor does a crown endure to all generations” (Proverbs 27:23-24, NASB).

Most companies that fail, work hard — but on the wrong things! To help your business stay focused on the right things, create a set of simple Key Indicators, which allow you to quickly assess the health and direction of the organization in a timely manner.

Key Indicators should directly relate to your Keys to Significant Success™, since you've identified them as the few things that MUST take place in order for you to achieve the business Mission, Vision, and Kingdom Purpose. This is critical to ensure you stay focused on improving performance in the right areas.

For the CEO level, create and manage by five to six leading indicators that are critical to the survival and growth of the company. Be sure at least one of them tracks redemptive activities that lead to eternal fruit.

Each department should also have their own set of Key Indicators tied to the mission of their department. These indicators allow people to get timely feedback on their performance and self-correct.

Remember, people always do what you inspect, not necessarily what you expect (WGMGD—What Gets Measured Gets Done). Do you know what Key Indicators you should be tracking that will tell you what direction your business is heading…long before your accountant gives you the financial news? If you had a set of leading indicators that allowed you to reliably forecast and make early course corrections, how might that affect revenue consistency, profits, and cash flow?