Business Or Service Appraisal Made Simple
There are many different ways that we can make an assessment on the performance of a business or an area that we are managing. These can be:
Another way of looking at performance falls into four distinct areas we can examine:
- Financial performance: are we making a profit, are we delivering a good return on capital employed, what is our cash flow looking like, are we “cash-rich”? Are costs being managed well and are the profit levels acceptable?
- Customer inputs: what do we know about customer satisfaction levels, what is our response time between getting an order/request for our services, what is our Market Share, what percentage of our work is repeat business? We MUST know the answers to these questions! Are customers actually getting what they want?
- Internal assessment: what are we really good at and what must we become really good at to derive performance onward and upward? Are we doing the right things the right way?
- Innovation and learning: what are our new services or products contributing to the overall performance. What revenues are each separate employee bringing into what we do and what are the skill levels of the current workforce looking like? Do we need more skilled/semi-skilled or manual grades of staff to drive up performance? What skills, talents and know-how do we have and how precious are they?
It is only by asking these questions, difficult though they might be, that we can assess how well, or badly, we are performing.
If we do not feel comfortable with what we uncover at least the framework about can serve as a quick and effective template to make some quick, and effective, corrections.
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