Avoid the biggest mistakes in defining business metrics
Defining business indicators in a conscious way is fundamental to be able to analyze the business objectively. It’s essential that the indicators can show managers solutions in order to correct errors and implement new strategies. There is still much difficulty in defining indicators and in this article we present the biggest mistakes that happen when it comes time to decide what indicators we are going to analyze.
Wrong monitoring solutions
The team that has responsibility for choosing management software often has no enough knowledge of the real needs of the users of these tools. Therefore, the people who should choose the most appropriate software are the managers themselves because they are the ones who know in detail the problems they face daily. Increasingly, monitoring software is simple and intuitive, allowing anyone, even without technical knowledge, to understand how it works.
Using Excel as an indicator management platform
Excel is probably the most widely used tool in the world in business and it’s appreciated for presenting a simple interface to perform some much-used functions such as calculations and spreadsheets. However, Excel has weaknesses that reside in the quality and consistency of the information generated. Excel’s manual processes are very likely to fail. Therefore, it’s necessary to reduce the manual work done in Excel. Excel should be looked at as a data viewer and not as an information generator.
Look at database as the solution to all problems
Databases are a key part of many analytical systems, but shouldn’t be regarded as the solution to all information problems. Databases shouldn’t be deployed before analyzing in detail the actual needs of the organization. To avoid this error, it’s necessary to identify the best method of integration and to know the access to information.
Acquiring management products for general analysis
When the business has no specific objectives, any tool is useless because it will be useful only if you can analyze the business in an integrated way. Business monitoring software should be applied when the organization is aware of its real needs and when it knows which indicators should be analyzed to improve its performance.