In this episode about Measurement:
- The episode explores the significance of measurement in business and introduces different measurement methodologies such as KPIs, balanced scorecards, strategy maps, and OKRs.
- Jim Schleckser emphasizes the value of measurement as both an early warning system for identifying issues and a tool for continuous improvement in organizations.
- The episode highlights the importance of visibility, accountability, and alignment with strategic goals in implementing an effective measurement system.
Here is a glimpse of Measurement:
In this episode of the Lazy CEO Podcast, host Jim Schleckser discusses the importance of measurement and different measurement methodologies. He introduces KPIs (Key Performance Indicators) as backward-looking measurements that inform how the business has performed in the past. Financial metrics are highlighted as an example of backward-looking measurements that provide a scorecard view of the business’s financial performance.
Jim explains the balanced scorecard concept, which incorporates financial, internal, customer, learning, and growth metrics. He emphasizes these metrics’ interconnectedness and alignment with the organization’s strategy. The balanced scorecard provides a comprehensive view of the business’s performance and helps identify areas for improvement.
Another measurement approach discussed is the strategy map, which takes the balanced scorecard one step further by linking strategic goals to specific objectives and key results. Strategy maps create visibility and accountability within the organization, ensuring everyone understands how their efforts contribute to the overall strategy.
Jim also introduces OKRs (Objectives and Key Results), a popular measurement system used in Silicon Valley. OKRs focus on short-term objectives and measurable results, typically within a quarter. They involve collaborative negotiation and a shared leadership model, encouraging team commitment and accountability.
The episode emphasizes the importance of having a measurement system in place, regardless of the specific methodology used. Jim encourages organizations to start implementing a measurement system and iterate over time to refine and improve it. The goal is to have observable metrics that clearly indicate the business’s performance and align with strategic objectives.
Resources mentioned in this episode:
- Jim Schleckser on LinkedIn
- The CEO Project
- Great Ceos Are Lazy: How Exceptional Ceos Do More in Less Time by Jim Schleckser
Sponsor for this episode…
This episode is brought to you by The CEO Project. The CEO Project is a business advisory group that brings high-caliber, accomplished CEOs together. Our team of skilled advisors comprises current and former CEOs who have run public and private sector companies across multiple industries. With our experience and expertise, we guide hundreds of high-performing CEOs through a disciplined approach that resolves constraints and improves critical decisions. The CEO Project has helped high-performing, large enterprise CEOs with annual revenues ranging from $20M to over $2 billion to drive growth and achieve optimal outcomes. If you are an experienced CEO looking to grow your company, visit www.theCEOProject.com.