Leadership Strategy: What Zone are You In?

As the leader in your business it’s up to you to measure and monitor the efficiency and effectiveness of your business. You’re aware of this responsibility, but sometimes you aren’t sure exactly what you should be measuring and monitoring for efficiency and effectiveness. When your organization is effective you and your staff are doing the right things. When you’re efficient you’re doing things in the right way. It’s important that you understand that you can be highly efficient, and very ineffective. This happens when you are efficiently doing the wrong things.

Obviously you want to be effective first and back up your effectiveness with efficiency. Rate your organization from 1 (meaning never) to 4 (meaning absolutely) for each of the following statements:

• Your customers are concerned with how quickly you respond to their request.

• You have the lowest service costs in your marketing area.

• You have 100% on-time delivery meaning that your customers receive your service at the exact time and date they requested or that you promised, and they are pleased with your service.

• Your account receivables are piling up because of incorrect billing.

• You have improved a process within the last 6 months, and you’ve measured and maintained the improvements produced.

• You keep paperwork at an absolute minimum.

• Your staff have recommended changes that have produced significant savings in your business within the last 3 months.

• You have data identifying the number 1, 2, and 3 complaints of your customers concerning your service.

• Your organizational structure supports the smooth flow of timely and vital information.

• You monitor your and your staff’s productivity and therefore are able to get more done with less.

• You clearly know what your customers value about your service and you have that value clearly defined.

Add up your score. If your score was 56-42 you’re in the inspired zone. You are ahead of the curve and on the right track. Ensure your behaviors and attitudes are leading improvement, and don’t allow yourself to develop a false sense of security. If you scored 41-28 you’re in the caution zone. This is where the average organization will fall. Sometimes you track and measure, and sometimes you focus on improving processes; but mostly you think you’re too busy fighting the daily fires. If your score was 27-14 you’re in the danger zone. You are probably hearing the alarm bells and know fast action needs to follow before you have big problems that can’t be overcome. You have dissatisfied customers and a low customer retention ratio. You’re surviving through new customer acquisition. In the long run the danger zone results in a short run as far as business longevity is concerned. Businesses in the danger zone have a high failure rate.