M&M’s are critical to a company’s success and I don’t mean the plain or peanut kind! Measurement & Management dashboards are important tools for building sustainable success.
A couple of months ago, Terry Matthews – a great Canadian icon of entrepreneurship – was speaking at a MaRS event about his success model for start-up organizations. Among his top tips: reporting.
Having started over 80 successful organizations in the past 25 years, Terry has a record of credibility. He explained that one of the keys was to have each of his organizations create a monthly report that measured a number of indicators in the rear-view mirror (We accomplished this; We achieved that; We we unsuccessful with this) and out of the front windshield (We plan on completing this; We are scheduled to achieve that). These monthly dashboard reports were prepared by the CEO as if the company were publicly traded on the TSX – a great standard of governance.
I am also encouraging my clients to draft these telltale M&M Dashboards that cover the important facets of their start-up. The CFO and CEO need to ingrain that culture of measuring and taking management action in their early evolution as an organization. Measurements should cover the basics of financial reporting but also drill down a number of layers on key indicators such as customer acquisition, product development, human resourcing, regulatory approval, channel development, etc. The clarity of the historic indicators and forward-looking statements will do wonders for the focus and accomplishment of these early stage organizations.
Watch the video for more insights from Sir Terry Matthews.