Developing Measurable Business Outcomes
It’s understandable why so many organizations still rely on activity-based metrics to measure success – most companies have been using activity-based, also known as “vanity” metrics, for years. The problem is these metrics don’t provide any real insight into the future business success of the organization.
Relying solely on activity-based metrics makes it far too easy for a company to assume that all is well, even when it isn’t. If your company is caught in this “business as usual” paradigm, you’re not alone. Many companies have not yet shifted their focus toward the metrics that actually matter. It’s why seemingly successful companies “suddenly” fail.
In this video, Agile Transformation, Inc. president and thought leader, Sally Elatta, guides a brainstorming session with other experienced professionals about the need for developing measurable business outcomes. Shift your organization’s focus away from activity-based, vanity metrics that don’t truly matter. Learn how to effectively develop measurable business outcome metrics to provide valuable insight into the future success of your organization.
Business outcomes measure business transformation and customer-driven outcomes.
How does your organization measure the value of work? If your organization is like most, there is a good chance you aren’t entirely sure how to effectively measure the value of work at all.
It’s also likely that the members of your organization push back against any changes to business-as-usual because they feel insulted or attacked when someone suggests a change is needed. They feel like they’re already doing their best and as a result feel irritated that anyone can expect them to do even better.
Irritated organization members can cause negative ripples throughout an organization and negatively affect business outcomes. So how do you get everyone on board with positive changes? Elatta has suggestions in this video that will help guide you.
What problems are we trying to solve?
A simple question needs to be answered: What problems are we trying to solve? Organizations need a clear vision of what they’re actually trying to achieve before any steps are taken toward solutions.
In this video, you’ll learn how to best pinpoint what problems need to be solved and how to go forward boldly into creating steps to solve those problems in an effective, measurable way.
Outcome and impact over output
“Look at all the stuff we got done!”
But how does all the stuff done translate into actual success for an organization? Elatta stresses outcome and impact over output in this video, explaining that a shift in thinking may be necessary in order to achieve the best organizational results.
Aligning business outcomes and measures
Is it traditional within your organization for the entire team to be accountable for all outcomes? As Elatta explains in this video, this isn’t sustainable or productive; there’s a better way of doing things.
Do you know which teams within your organization are specifically responsible for outcomes as it pertains to the overall success of your goals? If not, it’s time to rethink.
If all these necessary adjustments sound intimidating or overwhelming, don’t worry. Knowing which category your team falls within reveals which metrics you should track for that team. As explained in this video, all teams fall under the category of Run, Grow, or Transform. The truth is if you don’t know which category best describes your team, you simply won’t know how to determine capacity allocation effectively.
More lessons learned
The concepts discussed within this video can be a real game changer for organizations that are stuck in a rut of an ineffective business-as-usual. Elatta discusses business value measures and connecting business value to teams in ways that make sense – and make a difference.
By Sally Elatta, Founder of AgilityHealth, President of Agile Transformation, Inc.