Are You Hooked on HOPE-pium?

hooked

It is not uncommon for Executives to rely on gut and hope.  Hope is extremely powerful and often dismisses data.  We refer to this situation as being hooked on “HOPE-pium.”  High Achievement companies are disciplined about data and use data to drive decisions;  Using data to drive decisions cuts through ego, emotion, hope and excuses. 

High Achievement companies use just a few bits of data to assess performance and drive results.  The three types of data used by High Achievement companies are:   

  1.  Standard Corporate Financials.  High Achievement companies use standard corporate financials but in a more meaningful manner than typical companies.  They use 12 month trailing charts for key numbers such as Sales, Gross Profit Margin, EBITDA (dollar and percent), and Operating Expenses Percent because they tell the true story.
  2. Smart Numbers.  Smart numbers are leading indicator numbers that are predictive for the month, quarter and year.  They can be either industry numbers or company specific.  High Achievement companies monitor 2 to 3 smart numbers on a weekly basis so they can spot trends and respond in a timely manner to either mitigate or exploit the trend.
  3. Critical Numbers:  Critical Numbers are numbers that are directly tied to vulnerabilities or track performance toward a goal.

 To receive a paper on being Data Driven and Using Data to Tell the Story, email me at Kathie.mcbroom@thinking-organization.com.

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