Once you have the tools to effectively report on your business performance, it is time to start monitoring and understanding the results. Both the financial and operational components of your “business intelligence” reporting will provide insight into the success of the activities within your business. When the outcomes are not in line with your overall goals, the results need to be analyzed in order to identify the underlying causes. When issues are quickly identified and understood, you are in the best position to make the necessary adjustments before larger scale problems arise.
By continuously monitoring performance using meaningful information, you stay in full control of the state of the business. In addition, monitoring on a regular basis provides insight into trends that not only report information about past performance, but also enable the ability to predict and forecast future performance. The best, most strategic decisions can be made when you have the ability to see where you are headed and adjust accordingly.
As we look at the overall concept of “business intelligence” and how to enable it, the key goal is to provide the business owner with insightful information that can be used to continuously improve business performance. In today’s economy, a business owner must stay ahead of the game. Business Intelligence capabilities enable a business owner to be proactive in this challenging economic environment.
I’ve seen too many small businesses owners not have the correct tools to monitor the health of their business. Good information and simple tools for reporting it can make all the difference in your ability to achieve your goals.
I’ve enjoyed sharing my “5 Steps”. Let me know what you think and what specific challenges you face in monitoring business performance.