The Most Effective Way to Measure Your Team’s Productivity

Have you ever looked around your office and thought: my team is busy, but are they productive?

You can see how much time your team is putting into their work. They come in early, or work late. They fill their calendars with meetings, and respond to every email that comes their way. You know that your team has the best intentions. But what are they actually doing? And is it producing the results you need? You need an effective way to measure your team’s productivity.

A way to know that all that time they spend devoted to their job is moving your company forward, and not simply spinning their wheels.

The most effective way is to answer the questions below:

1. Does Your Team Know Where You’re Going?

One of the best ways your team can improve its productivity is for everyone to understand where you’re going — to have well defined corporate goals, and to focus on only a few at a time. According to John Doerr in his book Measure What Matters:

In a survey of eleven thousand senior executives and managers, a majority couldn’t name their companies top priorities. Only half of the could name even one.

If your team doesn’t know the company’s direction, they will have no idea how to do the things that will add value. Bob the Senior Manager might talk to 10 key contacts per day, but he might not know that none of these contacts have bought something from your company in the past year. He doesn’t know that increased sales from your team is an important, which is a way for you to contribute to the company’s key goals.

So the first way to measure your team’s productivity is to ask if they understand what is important.

2. Are You Committed to Your Specific Goals?

When I was CFO at a small startup, we worked hard to clarify a handful of important goals. The company was early stage, so our three goals were: fundraising, corporate partnerships, and pipeline product development.

But the CEO had Shiny Object Syndrome. Every time someone mentioned an interesting idea in the industry, he wanted to give it a try. We found ourselves assessing several product acquisition opportunities which would require a complicated debt agreement. As the CFO, I was dragged into days of work on these side projects.

As a result, our progress on fundraising and corporate partnerships stalled, which created a fire drill as time went on. We managed to raise funds in the nick of time, but missed our corporate partnership goals.

It was impossible to be productive as a team when we were running in so many different directions. We would pivot every time the CEO found something new and interesting.

The lesson is, while it’s critical to have defined goals, they won’t create a more productive team unless you commit to them.

3. Do You Have a Leading Indicator of Performance?

Once you’ve determined the few key goals for your company, you communicate them to your team, and commit to those goals (without chasing down every shiny object). The next step is to see if you have an indicator that measures your team’s performance.

Many companies use a P&L (profit and loss) statement to measure performance. And that is an important piece of the puzzle. But by the time you look back on the month, quarter, or year, all the activities that went into the P&L already happened, and all you can do is respond to them. But as Geno Wickman writes in Traction: Get A Grip On Your Business:

According to an old business maxim, anything that is measured and watched is improved.

So instead of looking backward, think about what you can measure to look forward in your business.

Let’s revisit Bob the Senior Manager, who talks to 10 key contacts per day. Talking to contacts can be one lead indicator, but that’s not enough. Talking to those 10 contacts is not generating the sales, and everyone on your team now understands is a key goal. But if you track the steps in his process, you can determine what is working and what isn’t. And better optimize your team’s productivity.

So for Bob, he could track the number of inbound versus outbound calls, the number of in-person versus phone conversations, the number of times he needs to talk to a contact before they make a purchase, and then the number of sales per week/month/quarter.

Keeping track of each step will give a much better metric of what is working and where things are breaking down. It will also tell you the most productive step.

For example, after tracking all the steps, Bob could realize that he makes 3 times more sales after in-person meetings than he does after phone conversations. So the way to measure Bob’s productivity is to keep track of his percentage of in-person meetings.

4. Does Everyone Know Who Owns What?

So your corporate goals are set. Everyone understands which direction the company needs to go, but that doesn’t meant that everyone on your team knows exactly what they are supposed to do. How they, individually, contribute.

Accountability is a key component to measure your team’s productivity. It is critical that everyone knows, understands, and owns their independent actions that contribute to the organization as a whole.

When everyone is held accountable for their contribution, your team is more productive. They know what other people seek in them. And when team members show both ownership and accountability, your team develops trust in each other.

Trust means less people checking or duplicating other team members’ work, or wasting time micromanaging; and a much more efficient workplace.

5. Is Your Team Making Decisions?

The ability to make decisions is an effective way to measure your team’s productivity. Decision making is difficult for almost everyone. People don’t want to commit, in case the idea is wrong or something better comes along, especially in a team environment.

But in Napoleon Hill’s classic book Think and Grow Rich, he mentioned a study that analyzed 25,000 people that had experienced failure. In that study, lack of decision-making, or procrastination, was one of the major causes of failure.

If you find that your team is spending a lot of time kicking a can down the road, instead of picking a direction, it’s likely that your team is not as productive as you might hope. Kicking that can take up a lot of time and energy, and can often take more time than simply picking a direction and then pivoting later.

6. Is Your Team Focused on What Is Urgent, or What Is Important?

So you’ve set and communicated a few, clear goals. You have found your leading indicators, and your team has the power and ability to make decisions. But they still aren’t reaching their targets. You still feel like they are working hard, but their results are not reflective of their actions…

Take a deeper dive into what is slowing them down. Some productivity slowdowns come from a team culture that requires immediate responses to email and days filled with meetings. It’s easy to use these actions as a proxy for productivity. But they aren’t actually producing anything.

So take a look at the daily actions of your team. Find out what they are doing that isn’t directly related to the communicated goals.

Help them prioritize the important tasks versus the ones that feel urgent because they showed up out of the blue. Remind them that it’s okay to address unexpected tasks but, as David Allen recommends:

Do unexpected work as it shows up, not because it is the path of least resistance, but because it is the thing you need to do vis-a-vis all the rest.

The Bottom Line

There are a lot of ways to measure and enhance your team’s productivity. But even if you find that your team is struggling with several of these issues at the same time, don’t change everything at once. Pick a few things that stand out the most. See what works in your unique workplace and what doesn’t.

Take a few mindful steps toward a more efficient environment and be consistent. Productivity is always intentional.

Remember, it doesn’t mean that everyone on your team has to perfectly managed every moment of every day. The goal is to focus on actions that create the results you want and minimize the ones that don’t.

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How to Start a Small Business That Thrives (From the Ground Up)

For most of us, it starts with an idea.

The idea can either be to break free from the corporate world. Be our own boss. Stop feeling like a cog in a machine and actually make a difference.

Or it can be more specific. Build the first or the best widget in the world. Because I’ve used every other widget out there and they are all lacking in a specific way.

The idea is to start a small business. To build something brand new. Brick by brick.

I have worked with dozens and dozens of small businesses and startups over the years. I’ve seen the good, the bad, and the ugly. I’ve seen companies go public at valuations of more than $200M, and others crumble under the weight of their own mistakes.

So if you have an idea, the spark is there but then your heart skips a beat, and you think to yourself: How exactly do I start?

To avoid some of the missteps that others have made, to build a business that thrives; here’s how to start a small business that thrives from the ground up:

1. Know Your Why

Simon Sinek has one of the most popular Ted Talks of all time, and a best selling book as well, called Start With Why. In it, he talks about how important it is to know why you are motivated to do what you do; and that why shouldn’t include “to make a million dollars” or “make my mother proud.”

It is about understanding the way you want to make an impact on the world. And it’s different, and personal, to each person.

I have found that having a solid foundation on why you want to start a small business makes all the difference. When things get rough (and they will get rough), you can return to this fundamental understanding and as a reminder of why you want to keep moving forward. As Sinek says:

Working hard for something we don’t care about is called stress; working hard for something we love is called passion.

So ask yourself, how do I start a small business that aligns with my Why?

2. Be A Consumate Learner

The most successful Founders and CEO that I’ve met are constantly asking questions. They are confident in what they know but are aware that they can always learn more. This can come up in a few key ways:

Before you even start your business, research your market.

Then research some more. Never think that you already know everything about people who buy widgets or all the other widgets on the market.

Ask questions. Then ask some more. Find people smarter than you or have way more experience, and listen to what they tell you.

Acknowledge that you don’t know everything. This is another critical piece to running a successful business.

I have seen it so many times. A Founder asks to “pick the brain” of someone else who has gone before. They hire a brilliant person to be part of the team — an expert in marketing or finance, and then disregard what they say or tell them what to do instead of asking them the best way to do it.

The CEO is missing a critical opportunity by not leveraging the team members/ expertise and not acknowledging that this team member has a lot to teach the CEO. It’s disempowering to the team member too.

3. Roll up Your Sleeves

You might have the fancy title – CEO, Founder or Head Honcho, but when you start a small business, you are also the receptionist and in charge of data entry.

At the beginning, you need to be willing to do all the nitty gritty work that goes into your business. You can’t be too good to do anything. The tasks might not be in your zone of genius. And sooner or later, you will be able to hire and/or delegate a lot of the smaller stuff.

But if you don’t understand all the little pieces that go into making your business great, you won’t understand how to scale your business and grow when the time is right.

4. Get in the Weeds

I have worked with many, many CEO’s, Founders, and Entrepreneurs, and most of them have one thing in common:

They are Big Picture Thinkers.

They are the ones with the dreams and the big ideas. Execution? Not so much.

So, if you are going to start a small business that thrives, you need to get in the weeds. Take a look at the details:

Why would blue be the best color for your widget? Who will take the orders that come in from outside the US? How, exactly, will you ship your products to the people that buy them?

Don’t avoid the details of your business because the big picture ideas are more fun.

Dreams and big ideas are critical when you start a business. But if you don’t have a handle on any of the details, you won’t be able to make those dreams a reality. And eventually, your business will crumble like a house of cards.

5. Build a Plan That Includes Budget, Expenses, and Profit

When you’re in those weeds, you must put together some numbers — real, researched, well-informed numbers.

Don’t assume you’ll take 50% of the current market because your idea is great. You need to create a plan that outlines every single expense that you’ll expect in the next 6 months to a year. You need to create a realistic timeline to product launch and create estimates for how much revenue you will get from your product, and when.

Without a plan that includes numbers, you will spend most of your time reacting to what happens around you instead of moving forward with intention.

Dave Ramsey is one of the big gurus of small business and personal finance. In his best selling book, EntreLeaders, he keeps it simple. He says:

Business is not really that hard. You are, however, required to do the basics or you will not win. Budget and do the accounting, stay out of debt, don’t buy what is not needed what is not needed to make a profit, save cash, and always be generous.

And you need to have a good answer to the most important question of all – when will you make a profit?

6. Avoid Shiny Object Syndrome

You’ve put your plan together. You’ve researched your market. You know that you want to create 2 inch widgets in a gorgeous shade of blue. You will sell them for $1/widget. Bob the designer is signed up to build them. You’ll launch in June!

And then…

My neighbor Betsy told me she’d love a widget in green. Should we change the color to green? And Johnny’s teacher mentioned that she could use a widget that is 3 inches. Let’s change the size of the widget!

It’s so common. We have an idea but what if there is a better idea?

Do your research. Make informed decisions. And then stay the course. You can always pivot later.

But if you keep turning your head toward every shiny object, you won’t reach the goal right in front of you. You’ll never launch that product by June.

7. Trust Your Team

A small business might have one founder, but people rarely start a small business all alone. There is often a consultant, a partner, a sounding board. And then, consultants, accountants, and marketing experts.

No one’s “zone of genius” covers every area. So one of the best ideas on how to start a small business is to find a great team to help get your idea off the ground. Spend critical time on the front end vetting and hiring great people. And then let them do their job.

In my years on Wall Street, I saw first-hand the impact on a business when the Founder didn’t trust their team. I had hundreds of small private companies pitch their businesses to me, with the hope that my investment bank would take their company public.

The companies that gave me the most pause, the ones that rarely succeeded were the ones where the CEO did all the talking, or when he or she cut off his team members when they tried to answer questions.

Because in my mind, if that happened, it meant one of these two things: 1) the CEO is not listening to all the other smart people in the room; or 2) the CEO does not trust his team.

Both options were a recipe for failure.

Believe In Yourself

Trying to start a small business can be incredibly difficult. We dream of the possibilities but get overwhelmed by the realities.

Know your why and believe in your abilities. Don’t try to be the best in the world or execute flawlessly. Learn and grow and keep trying.

If you do all the above things, you will be a success in whatever way you choose to define that word.

Resources About Entrepreneurship

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10 Steps for How to Change Habits When You Feel Stuck in a Rut

We’ve all been there.

We wake up one morning and realize that we’ve repeated the same day, over and over. Wake up, go to work, eat dinner, go to bed. Maybe we sprinkled some family time in there. An occasional trip to the gym. But we long for so much more. More time. Time for self-care. Time to work on that dream project that we’ve thought about for so long. But we feel stuck. We are on a hamster wheel and we don’t know how to get off.

What we don’t realize is that repeating the same day, day in and day out, is simply a habit.

According to Charles Duhigg, author of The Power of Habit, habits are a three step loop. First, you are given a cue (for example, a time of day like 3pm), you perform a routine (walk to the vending machine), and you receive a reward (candy bar).

Understanding how habits work is a key to understanding how to change habits. Once you change your habits, you can take control of your life and your time. And finally reach those goals that you’ve dreamed about for so long.

Here are 10 tips for how to change habits when you feel stuck.

1. Start with awareness

You march through your day without a thought, because it has become a habit. But take some time over the next few days to write down everything you do during the day, and when. Include the time you spend on your phone (many phones now have a Time Tracker on them). You might be surprised at what you see.

Are you spending more time on activities than you realized? Are you mindlessly performing tasks that you don’t need to perform? Once you see a few days in black and white, you can better understand what you are doing. And how each habit does or does not align with the larger goals of your life.

2. Stop saying YES to everything

Another parent at your child’s school asks you to make brownies for the bake sale, and you say yes. Even though it means that you will have to stay up late, and be too tired to go to the gym the next morning. Or the marketing team asks you to sit in on the 2pm call even though you’re not on that project, and you say yes; even though it means you won’t finish a big report today. And will have to use some family time over the weekend to get it done.

Saying yes is a habit. The cue is someone makes a request. So, of course you say yes. And the reward is that you get to avoid a feeling of guilt. Or you get to enjoy feeling needed. But the habit is not serving you. Because you are pinging around like you’re in a pinball machine. And you’re not getting to all the things that are important to you.

The next time someone asks you to do something. Take a minute. Break the habit loop. And actually think about the request. Before you respond.

3. Figure out what is important to you – and what isn’t

Let’s say you find yourself spending a lot of extra time volunteering at your kid’s school. Time that is spent away from your children and your job, and doesn’t improve your health.

But when you sit down and think about what is important to you. You realize that you need to prioritize work, family life, and a health goal. So how does that volunteer time fit in? Is it important to you, or not? You realize that much of what you do is not related to your own personal priorities.

We are all busy. But we need to learn how to change habits that involve doing things that don’t align with our larger goals. So it is important to take the time to figure out what your larger goals are:  family, work, health. Or, work, health, and writing that book you’ve dreamed about.

Be mindful of what is important to you. So that you can prioritize your days accordingly.

If you aren’t sure how to prioritize your life, this guide can help you:

The Ultimate Guide to Prioritizing Your Work And Life

4. If you don’t have a productivity system, create one

A productivity system doesn’t have to be complicated. It does have to be something that works for you. Basically, a productivity system is a way to make sure that:

  • You are doing tasks that align with your goals
  • You know what those tasks are
  • You know when you are going to do them

Everyone has a different system. Some love to use beautiful paper planners, others prefer an app on their phone. It doesn’t matter how you want to do it. But you need to take control of your own schedule.

Make a new habit of planning out your day or your week on a regular basis. Figure out a cue for it. Every day at 5pm I will take 15 minutes to plan out the next day. The cue will be the time of day. The routine is to plan. The reward is to create a day full of intention.

5. Start slow – 1% change a day can add up to powerful results

When something is a habit, it is well ingrained into our routine. We perform a habit almost mindlessly. So, when we think about how to change habits, we need to start slow.

James Clear, author of Atomic Habits, talks about the 1% rule. He says:

Habits are the compound interest of self-improvement. They don’t seem like much on any given day. But over months and years their effects can accumulate to an incredible degree.

Basically, you only need to figure out how to change habits by 1% per day to see a significant benefit over the course of a year.

So start with one, small habit. When it’s 3pm and you find yourself walking to the vending machine, make your way over to the water fountain instead. Or, go outside and walk around the block. Pick one thing and make a change. And then go from there.

6. Stop listening to all your negative thoughts

“I don’t know how to do this.” “I don’t have enough time.” “I’ll fail and then people will judge me.” Do any of those thoughts sound familiar?

For many people, those thoughts play on a constant loop. Telling you what you can’t do. It’s too hard. Don’t even try.

Change is scary. The idea of doing something new, or something that people could judge, can make your heart pound and make your mouth dry. To your body, it feels exactly the same as if you are a caveman being chased by a tiger. So your brain wants to respond the same way. It wants to run away and hide.

But guess what? Those thoughts are a habit, too. The trigger is that you want to try something new. The routine is to tell yourself you can’t do it. And the reward is to stay in the same routine. One that is safe. Where you might not make any progress toward your goals. But you won’t be eaten by a tiger, either.

So the next time you hear that voice in your head telling you that you can’t do it. To run away from the fear. Remind yourself, it’s a new habit, not a tiger.

7. Make a plan for when things do go wrong

The psychologist Peter Gollwitzer came up with the powerful concept of “if-then planning.”((Develop Good Habits: How If-Then Plans Helps You Stick with a New Habit)) The basic idea is this: make a plan that says, if X happens, I am going to do Y.

Gollwitzer showed that this behavior has can have a huge impact on the success of changing habits.

Let’s say you usually sleep until the last minute before you have to get up for work. But you are looking to start a habit of running in the mornings. And your plan is to run 2 miles tomorrow morning. But when you wake up, it’s raining or snowing. Enough that you don’t want to be outside. What do you do?

Without an if-then plan, you will probably roll over and go back to sleep. But if you made a plan the night before. If the weather is bad, I will go to the gym down the street. And run on the treadmill. The reward will be that I get to watch 30 minutes of a”guilty pleasure” TV. Then, when you look out the window and see the rain, you know exactly what to do. And you won’t fall back into your old routine.

8. Focus on your effort

Here’s a secret about everyone you know. Everyone has failed. Everyone from Steve Jobs to the co-worker in the cubicle next to you.

But what makes the difference is how you manage that failure. Do you take failure as a reason to give up? Or do you reframe it as a learning experience? Accepting failure is a way to stay in that rut. To keep doing what is safe. Even though it doesn’t make you happy. Accepting failure is a habit.

But if you can focus on your effort. Your attempts to change. Then you can continually learn from any missteps. And keep moving forward.

Carol Dweck found, in her book Mindset: The New Psychology of Success, that the most successful people in the world focus on their effort, not on the outcome. That they frame failures as learning experiences. And, as she says in the book:

John Wooden, the legendary basketball coach, says you aren’t a failure until you start to blame. What he means is that you can still be in the process of learning from your mistakes until you deny them.

9. Celebrate small wins

One of the most powerful ways to reinforce how to change habits and make new ones is to give yourself a reward. As Charles Duhigg wrote in The Power of Habit:

Studies of people who have successfully created new exercise routines, for instance, show they are more likely to stick with a workout plan if they choose…a clear reward, such as a beer or an evening of guilt free television.

So don’t downplay any positive changes that you make. Reward yourself and celebrate:

How To Celebrate Small Wins To Achieve Big Goals

10. Keep trying

Let go of the idea that you need to be perfect at this, or that you need to do it all at once. Learning how to change habits takes a long time and will need to be refined continually.

But when you are feeling down or frustrated, remember this is not about getting on or off a wagon. If you slip up, that doesn’t mean you need to give up and fall back into your old habits.

There is no wagon. There are just good days and bad days. If you keep your bigger goals in mind and remember how you long to find more time, work on that side project, or focus on your health, you can do it.

Keep going and find what works for you!

More Articles to Help You Build Habits That Stick

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