Join Mike Figliuolo for an in-depth discussion in this video Defining your measures, part of Executive Decision Making.
- When you go to make an executive decision, define short-term, medium-term, and long-term measures for how you're going to look at success. Those measures should be quantitative, as well as qualitative. Look at things like customer impacts, revenues, profits, costs, net promoter scores, associate survey comments. Document what the metrics are, and track them over time. Now, make this a manageable set of metrics.
The way I encourage people to think about it is: Only track the metrics that will change the answer, that will cause you to go back and change your decision. One example that I had was, we were looking at changing our commissions for some oursource vendors. We paid these outsource vendors tens of millions of dollars per year. This was going to have huge financial implications. It was also going to affect our customers. We wanted to change compensation because it was going to save on cost, and hopefully drive top-line performance.
Now, for this decision, we only had four key metrics we were going to track. And we would track them from day one of the change. Each metric had clear tolerance levels that we agreed upon upfront. If a tolerance level was going to be breached, we had clear contingency plans in place, including reverting to the old compensation plan. We monitored these metrics for a year before we declared success and said that was a good decision.
As you're looking at the executive decisions you make, think through what are the metrics that really matter. There are so many things we can measure, and measurement takes time and resources. Find those metrics that will cause you to change your decision. Articulate those tolerance levels. Hey, if net promoter scores are between nine and six, we're okay with that, but if it drops below six, we need to roll the decision back. Having those clear tolerance levels upfront makes changing decisions down the road much easier.
When you have that clear set of metrics, and those tolerance levels that you measure over time, your executive decisions will be that much more effective.
Mike helps you find the data and tools to support your decision, make the call, communicate decisions effectively, and lead your organization through the change. He'll also address common problems that arise from these high-profile decisions: cultural differences, quality of information, trust, and accountability, to name a few.
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- Explore methods for communicating more effectively.
- Review decision-making styles to find the best one for you.
- Recognize the right time to declare success.
- Recall how an understanding of inherent biases can help you get the right data.
- Review methods for building trust.
- Explore how to make the right call while assessing risks.