How is success measured? It is not an easy question to answer and the metrics used to judge success often change with the trends of the time. Benchmarks are often set by your peers and by the profession you endeavor in.
In an industry like pest management which is dominated by small to mid-size businesses, time is a precious commodity few can afford to use unwisely. Determining what to benchmark in their business or what a benchmark actually is or does for the company, is an important first step in the process.
The starting point for small business owners is to constantly evaluate the business and identify problem areas that need attention.
To get a successful benchmarking program off the ground, it is wise to remember the following key steps:
• Decide what needs to be done and how you want to accomplish it.
• Set timeframes to achieve those goals.
• Get to work and be very tactical.
A tried and true tool that business owners can turn to comes from legendary management expert, author and consultant Peter Drucker.
Drucker’s often-referenced S.M.A.R.T. theory for setting and achieving goals has been used by generations of owners and managers looking to sharpen efficiencies and improve performance.
Successful small business owners and management consultants will tell you having a plan to follow for benchmarking your company’s progress and setting goals is the “smart” thing to do.
The “smart” thinking movement was started by legendary management guru Drucker who, in the course of his storied career, consulted with a “Who’s Who” of Fortune 500 corporations including Coca-Cola, IBM, General Electric, Procter & Gamble and Intel to name a few.
Drucker first introduced the S.M.A.R.T. theory of tracking goals in his 1954 book The Practice of Management to help business owners and managers set and measure their performance. Drucker encouraged managers not to get caught in the “activity trap” of being so deeply involved in the day-to-day activities of their business that they were unable to remember the main purpose or objective of their operation.
The core principles of the S.M.A.R.T. theory have stood the test of time and resonate as strongly today as when Drucker first introduced them. As with any business theory, the final results depend on the execution.
The following is a review of Drucker’s original theory and how small business owners can apply it to their business.
Is Your Goal Specific?
Small business owners should set very specific and clearly defined goals. Know what you want to accomplish, why the goal is important to your organization, and how you and your team will accomplish this goal.
Is Your Goal Measurable?
Measurable goals include targets and benchmarks small business owners can use to track their progress along the way. Paint a clear target for yourself and your employees.
Is Your Goal Achievable/Attainable?
Any goal set by small business owners should be realistic. It is good to dream big but if the achievement bar is set too high, failure and its unwanted fallout will occur. Break down your goal(s) into smaller segments that allow you to easily measure achievement, and put you and your team into the best position to succeed.
Is Your Goal Realistic?
Do the goals you came up with make sense for your business? Certain goals may work for General Electric or Delta Airlines but how effectively can you apply them to a 15-person operation? Make sure the goals align with your resources and finances, your industry (i.e. snow and ice management), your customers and your employees.
Is Your Goal Time-Related?
When do you want to accomplish your goals? Set a realistic timeline for reaching your goal(s) and keeping the enthusiasm and momentum moving forward to a successful conclusion.
So what is the payoff of going through the performance measurement and benchmarking process?
First, is that you gain a clearer picture of your industry. You see what your peers are doing and how you measure up against them. Are your operating systems, equipment and technology, compensation levels, and marketing efforts ahead of the curve or lagging behind?
The second benefit is that along the way you will learn things about your business that will help you expand, make it run more efficiently or more profitable. Talking to your technicians may produce ideas on how rescheduling routes can increase productivity or how a change in treatment protocol can lead to better results and more satisfied customers.
The third benefit is that going through the process will broaden your personal and professional horizons. You will become a better manager of people and process. You will learn things that can help your business expand and discover new revenue streams and markets. And most important of all, you will improve the overall health of your company.