There’s an old saying in business: “What gets measured gets managed”. The problem is that plenty of businesses are still making decisions based on gut feel, crossed fingers, and whatever happened to be annoying them most that week. 

And look, instinct absolutely has its place in business. But instinct backed by good information? That’s where the magic happens. 

Businesses that consistently perform well tend to have one thing in common. They know their numbers, they understand the drivers behind them, and they act on them quickly. 

The ones that struggle? They’re often buried in paperwork, distracted by noise, or spending half their time reacting to problems they should have seen coming three months earlier. 

So, if you want to improve business performance, here are a few simple places to start. 

 

get clear on what actually matters

 

Not every number deserves your attention. 

One of the biggest mistakes I see business owners make is measuring absolutely everything, then wondering why nobody looks at the reports. 

Your business probably has a handful of key drivers that really move the needle. It might be: 

  • Gross profit margin; 
  • Average sale value; 
  • Conversion rates; 
  • Debtor days; 
  • Utilisation rates; 
  • Customer retention; 
  • Cash flow. 

Work out what matters most in your business and focus there first. 

And please, keep the reporting simple. 

If your performance report is longer than a Netflix terms and conditions update, nobody’s reading it. You’ll find yourself drifting off halfway through… mentally sitting on a beach somewhere with a cold drink in hand. 

Short. Sharp. Useful. 

That’s the goal. 

 

stop drowning in a sea of figures 

 

Here’s something you probably never expected an accountant to say. 

A giant spreadsheet full of numbers isn’t exciting. 

Graphs, visuals and trends communicate information far better than walls of figures ever will. Good reporting should help you spot problems quickly and make decisions confidently. 

A simple graph showing sales trending over three months is powerful. 

A dashboard showing debtor days blowing out is powerful. 

A visual showing labour costs creeping higher while productivity falls? Very powerful. 

The easier your reports are to understand, the more likely you and your team will actually use them. 

 

focus on what you can control 

 

There’s no shortage of noise out there. 

Interest rates. Elections. Global markets. AI. The economy. Someone on LinkedIn predicting the end of civilisation every second Tuesday. 

Successful businesses don’t spend all day worrying about things outside their control. 

They focus internally. 

They improve systems. 

They tighten processes. 

They train their people. 

They improve customer experience. 

They collect cash quicker. 

They adapt. 

Performance management is not just about reading reports. It’s about using those reports to make better decisions and take better action. 

 

don’t ignore the boring bits 

 

Want to know where a lot of businesses leak profit? 

The back office. 

Systems. Processes. Billing. Follow-up. Workflow. Communication. 

Not sexy. Hugely important. 

Your customer experience starts well before the invoice gets paid. Every touchpoint matters. 

If your systems are clunky, slow or confusing, chances are it’s costing you time, money and customers. 

The best businesses are constantly tweaking and improving how workflows are handled throughout the business. 

And importantly, they involve their team in the process. 

Your staff live in those systems every day. They’ll often know exactly where the bottlenecks, frustrations and inefficiencies are hiding. 

 

adapt or get left behind 

 

Kodak invented the technology behind the digital camera. 

Then largely watched the market pass them by. 

That’s a pretty good reminder that past success guarantees absolutely nothing. 

Businesses that perform well over the long term are usually the ones willing to evolve. 

They watch trends. 

They listen to customers. 

They refine products and services. 

They embrace change instead of fighting it. 

Small businesses have a huge advantage here because they can pivot quickly. 

The challenge is recognising when change is needed before the market forces the issue. 

 

your time matters too 

 

One final thought. 

Business owners are often the worst offenders when it comes to performance management. 

Why? 

Because they spend too much time doing $40-an-hour tasks when they should focus on $400-an-hour activities. 

Yes, administration matters. 

Yes, bookkeeping matters. 

Yes, operational tasks matter. 

But if the business owner is buried in low value work all day, who’s driving growth? 

Good businesses understand leverage. 

Sometimes paying someone else to handle the operational load is the smartest investment you can make. 

 

final word 

 

Business performance management doesn’t need to be complicated. 

Know your numbers. 

Measure what matters. 

Keep reports simple. 

Focus on the controllable. 

Improve your systems. 

Adapt quickly. 

And most importantly, actually use the information sitting in front of you. 

Because better information really does lead to better decisions. 

And better decisions generally lead to better businesses. 

Funny how that works. 

Tip: Don’t wait until there’s a problem to start measuring performance. By then, you’re reading the scoreboard after the game has already been played. 

 

we’re here to help  

If you have any questions or need a hand improving your business performance, reporting or strategy, you can contact me or give the team a buzz on 1300 BDEPOT.  

  

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