5 ways to focus on results instead of process

5 ways to focus on results instead of process
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One of the great lessons I learned as a submarine officer was how to focus on results. On a nuclear submarine, the crew performs many tasks to keep the ship on mission. With the exception of those jobs where split-second errors can cause massive problems (e.g. the nuclear reactor operator, the helmsman, the planesman), jobs on a submarine are performed with little direct supervision. A big reason for this is metrics, reported via logs. The crew is trained to know what to look for in those logs, and each supervisor understands what the logs are telling him. By focusing on results, and through periodic observation, leaders can ensure that the ship will succeed in its mission. Micromanaging is impossible given the staffing level.In comparison, most small business owners focus primarily on their processes, not their results. If you ask those owners, they’ll assert that they do focus on results. So, why is there a disconnect with reality?

Importance of focus
The disconnect often comes from a lack of understanding of what it means to be results-focused, or there could be discomfort with “letting go of micromanagement,” a by-product of results-focused leadership. There might also be a lack of metrics necessary to manage results. So who cares? Why should anyone care about becoming a truly results-focused enterprise? Because we get paid on results, not process. Note: I’m not dissing process. Process enables you to consistently deliver results, and without well-documented, well-followed processes, you are not ready to focusing on results.
Another important factor is scalability. Focusing on results and managing by exception requires fewer management resources for the same outcomes. This positions the business for profitable growth.Also consider the effect of better morale. In a recent poll, I asked, “What do you think of your boss?” and almost 60 percent rated that person as either “meh” or “a jerk” (as of this writing). Not good. Focusing on results helps employees know how their success will be measured. It will also ease their concerns that they’re bring treated like children. Here are five ways to find your focus:

1. Discover the metrics you need for effective oversight
Get your metrics updated at a rate that makes sense. Incorporate historical data to get trending information. If you use software to run any part of your business (for example, financial reporting, billing, work management, supply chain management, client relationship management, etc.), you most likely have the data you need for your metrics. In many cases, the native reports of your systems will do the job, but it’s also quite acceptable to download raw data into Excel, Access, or higher-end business intelligence tools to get the information presented the way you want it. This doesn’t need to be expensive; Excel is easy to use, has a great help function, and is simple to troubleshoot if analysis problems crop up. Some example metrics are:
Financial reporting: income statement, balance sheet, statement of cash flows, accounts payable, bank balance
Product line profitability to have a good estimate of your overhead rate
Accounts receivable: current and overdue invoice status, historical trends
Productivity: direct labor utilization
Sales and business development pipeline: deals in the pipeline, time since last contact, yield, closing rate

2. Review your metrics as often as they are updated
Make sure you are seeing what you expect to see. If you’ve had a profitable month, your average bank balance should be going up (accounting for capital expenditures, of course). If your CRM is showing closed sales, you should see that show up in your backlog (for example). If your overdue receivables are dropping, you should see that in your income statement.

3. Take action when things that don’t make sense or are trending in the wrong direction
If your employee productivity is high but your output is lower than expected, that’s something to investigate. If the trend for your receivables shows growing overdue balances, then ask the supervisor why.

4. Don’t be a nag when results are good
If you have good metrics and your employees are knocking the hide of the ball with their results (for example, productivity), don’t sweat the Facebooking or texting when you’re walking in the office. Get over it. If it becomes a problem, you’ll know by looking at the metrics. If your results are awesome and improving, but Facebook is driving you crazy, then focus your efforts on bringing in more business. That will solve your Facebook problem because there won’t be time for it.

5. Take steps to minimize spoofing
Wherever there’s self-reported data (like the CRM system, or billable hours), there’s a chance that the data entered can be faked to make the employee look good. Data that is reconciled by multiple people is one way to stay on top of this, but good leadership is the best way to keep tabs. Along with making sure that your metrics make sense (increased sales should lead to increased revenue, increased productivity should lead to more invoicing, etc.), get out of your office, walk around daily and talk with your people.

http://www.bizjournals.com/bizjournals/how-to/growth-strategies/2015/04/5-ways-to-focus-on-results-instead-of-process.html?page=all