Monitoring Performance: The Problem With ROI Simplification
In almost all aspects of our lives, we simplify things to make them more understandable. Want to be successful? Work hard. Want to be fit? Work out and eat right. Want to learn? Read a book.
Those thoughts aren’t wrong. If you work hard, you definitely have more chance of being successful. If you work out and eat right, you’ll probably become more fit! Reading a book can be a simple way to learn. As a whole, these actions typically help derive the outcome you’re hoping for.
In fact, throughout history, we’ve always tried to find the silver bullet for multifaceted issues we encounter.
Medical doctors used to prescribe cigarettes for asthma, arsenic for sleeping sicknesses and heroin as a less-addictive substitute for morphine. It doesn’t stop at medicinal silver bullets either. Weight loss fads still carry on today. Keto takes away all carbohydrates, all vegans remove anything that comes from another animal, and even the carnivore diet that takes plants off of the metaphorical and literal plate.
So what does all that have to do with the topic? One word: oversimplification.
Revisiting the first simplifications we discussed, how does one become successful? How does one become fit? How does one learn? To answer all of them at once; it depends.
Some find success in consulting, others in real estate, and even others in entrepreneurship. Fitness is obviously different for everyone. What worked for Arnold Schwarzenegger might not work for someone else. Genes play a large role as well as diet and will power. Learning is much the same. Visual vs auditory learners, those who love to read vs those who love to listen or watch. In all of these instances, people have tried to oversimplify what leads to these various outcomes.
In business, it’s no different. Because the relationship between sales and revenue is so simple, it’s often taken as the only thing that can realistically affect it. So sales teams are tracked meticulously in regards to their performance. Organizations have put more emphasis on sales than anything else because the thinking goes that if your sales team is good, revenue grows.
Again, as before, this isn’t untrue. The point I’m trying to make is that sales is one of the many business functions that contribute to revenue. Sales teams flounder without a product that wins against competitors and delights customers. Revenue drops when operations are inefficient.
In short, a company can’t succeed if any one part of the business isn’t excellent. So here’s the big question: why aren’t we tracking performance across the entire business as closely as we are with the sales team? The Cardagraph platform was created specifically because of this realization.
We believe that if a company wants to improve any one metric, the answer is more nuanced than we typically think. We know that to increase profit, there are more ways than one! Companies can increase revenues by offering a new product line or they can decrease customer churn by focusing on customer success. Companies can also lower costs by decreasing employee turnover or improving the efficiency of their processes.
In order to bring some of those use cases to fruition, we need more information than we have right now. To increase efficiency of processes, we’ll need to know what kind of efficiency we’re getting right now. That requires performance monitoring. To decrease employee turnover, we’ll need to understand what trends predict someone leaving the company.
Sales can cover a lot of issues, and it is extremely important for all companies. Sales is not the only thing that should be tracked. Help us increase information regarding all employees and allow executives to make data-backed decisions.
Join us! And change business from an art to a science.
Director of Sales