The AFL season begins again tomorrow, and on the day before the first round the players, coaches and fans alike will have high hopes for the year ahead, this being the only time where every team is on a level playing field. Although this is the case, all 18 teams will have different expectations with which to measure their results against during, and after, the season. A handful of teams are vying for premiership success and will see even a grand final loss as a failure, while the majority will be aiming to make the top 8 so they can play in the finals. At the other end of the spectrum, there will be teams whose aim will be to simply be as competitive as possible and avoid the wooden spoon (go Blues!).
No matter the expectation, you’ll expect that every player on every team has had it drilled into them since day 1 of pre-season, and coaches have set up detailed plans for how they’ll get there.
Just like in sport, in business results are everything. They will show you how the business is doing, being the outcomes of everything you’ve done in and around the business in that reporting period.
Your Results Depend On Your KPIs
Every sports team puts expectations on individual players, whether it be to get a certain amount of goals, passes, tackles, distance etc. These are the key KPIs which contribute to the team’s result each match. After a loss it’s typical for teams to review what led to the defeat so they can learn from it, and while such reviews are very complex and multifaceted, they boil down to one of two conclusions:
They did not meet their intended target, and lost the game because of it. Therefore they need to concentrate on meeting their targets.
They met their targets, but still lost the game. Therefore they need to set higher targets and strive towards meeting those.
In each of those scenarios the common factor is that they have analysed their result and the team’s part in it, and worked out what they need to change to get the result they want next time.
Measure Your Results
It’s the same in business where you have a goal in mind, and you should!, for example you want a profit of $1 million. You’ll need to work out how much revenue you’ll need to make to get to that figure once costs have been taken into account, how many sales you need to make to get to that revenue, and how many sales are typically made per customer that walks in the door.
This is where setting your KPIs come in, as you should be well aware of what you need to do to get the result you want. Download our guide to learn more about setting effective KPIs here.
Say you’re $200,000 short on that target, you may be tempted to immediately think it’s due to lack of sales and invest in sales training for your staff. However, if you looked deeper into the result and your KPIs, you may find that the salespeople were actually meeting their intended targets, but there weren’t enough customers coming in the door, and therefore you should be investing in marketing instead.
Once you know each facet that impacts on the final result, you are in a position to make the right decisions when faced with a failure to hit the target, as you can see straight away which cog in the wheel didn’t spin.
When Analysing Your Results Is Most Effective
There’s a reason sports teams will analyse a result the training session after it happens, and why businesses should not wait to do so either. it’s because results need to be looked at as soon as time permits. At the end of the day, results are a reflection of past performance, and therefore need to be looked with a view to taking action as soon as time permits, to avoid running the risk of the results being irrelevant.
Knowing everything that contributes to your results means that you can make correct decisions when looking to improve on them. Want to start analysing your results with confidence? Book a chat with Business Coach Ray Strongman today.