Leroy Wall, Wall Consulting Group
Many of us have looked in the mirror and suddenly realized it is time to see a personal trainer. Our fitness level isn't what we want it to be.
It likely didn’t get to this stage overnight. In fact, it probably happened so gradually we didn't even notice it until it required immediate and urgent attention.
We subsequently book an appointment with a personal trainer. She figures out where we are fitness-wise and then sets goals for us. To help us reach our goals, she coaches us in an exercise and diet program appropriate to our age and fitness level. Finally, she continually measures our progress:
· How much faster we can run
· How many more repetitions we can complete
· How much more weight we can lift
The trainer’s goal is to make us healthier. The good news is, most people who use trainers will achieve improved results.
So when is the last time you measured the health of your investment operation?
You probably come to work most days to find everything apparently functioning well. You can’t remember the last time there was a material error or a major issue. You believe you are running a lean and healthy shop, but your shop may have built up some unwanted excess fat and unwanted health issues. It may have happened so gradually you didn’t even notice it. Sound familiar?
A common pitfall in an investment operation comes from not objectively defining and measuring your success criteria. Unless you have defined what your Key Performance Indicators (KPIs) are and you measure your success against them, you likely won’t know you have an escalating problem.
In their simplest form, KPIs function like your personal trainer to improve your investment operation. Just like your trainer, they help you figure out where you are health-wise and then set goals to ensure current and future success. KPIs provide a tool to continually measure your progress, set new goals, and achieve and maintain the highest standard of operations.
We recommend you pick up a copy of Key Performance Indicators: Developing Implementing, and Using Winning KPIs, by David Parmenter.
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