What gets measured, gets managed.

You need to track and measure activities, performance, and outcomes. This allows you to know if you are on the right path, where to make changes and optimize, and to have quality information for reports to management, funders, partners, and other stakeholders.

Let me get a few things out of the way before we explore how to harness the power of measurement.

First, like many, I always thought that Peter Drucker said: What gets measured, gets managed. This principle has been attributed to him, but through my research it appears he may not have literally said this.

Apparently, he did add a nuance. From The Effective Executive, he said: “Moreover, because knowledge work cannot be measured the way manual work can, one cannot tell a knowledge worker in a few simple words whether he is doing the right job and how well he is doing it.”

Second, you must keep in mind your context before you track and measure anything. You must be conscious and mindful. Remember, garbage in, garbage out. And people are more than just numbers.

Ask yourself: Are our metrics correct? Can it be measured? Do we have the right logic-model or theory of change? How do we measure “enthusiasm, alignment, or commitment?”

Finally, you must be SMART (specific, measurable, attainable, realistic, and timely), focused, and committed to the long game. People often fall short due to forgetting their objectives, getting distracted, not being disciplined, or not having a strong enough WHY.

What gets measured, gets managed can help.

f you’re measuring, then the probability of you acting upon the information you now have is a lot higher. Regular measurement and reporting can keep you focused on what you’re trying to achieve.

• The simple act of measuring increases your motivation to perform. Think like an athlete.
• Setting goals and measuring performance leads to responsibility and accountability.

Measuring the right things provides you with data to make subtle changes to steer yourself on the path to success.

Every small business owner and nonprofit executive wants to have his or her “finger on the pulse” and wants to view performance in real time (management dashboard).

Understanding and leveraging what gets measures, gets managed, can transform the way you operate. Let’s dive into why this principle is so powerful and how you can make the most of it.

Unlock Insights – Capture and Leverage Data

Would you drive a car with your eyes closed? Leading your team and managing your organization without having the right data may feel like this.

Instead, measure the key operational elements and gain critical insights into what’s working, what’s not working, and where to improve.

Track customer satisfaction to reveal how well your services are meeting needs. Monitor donation trends and metrics to better understand your nonprofit’s revenue and fundraising health.

Data-driven decisions are smart and essential for strategy, growth and sustainability.

Know Your Tactical Triangle - Traffic, Conversion, and Economic Value (2-way)

For many types of businesses, the Tactical Triangle is your best friend. It consists of three crucial metrics - traffic, conversion rates, and economic value.

Diligently tracking these aspects and making small changes where necessary can cause exponential revenue growth.

You can optimize your resources and efforts while maximizing impact. It is like fine-tuning a machine or musical instrument. The better each part works, the more efficient, effective, and greater the whole becomes.

Establish Robust Systems – Monitor, Monitor, and Monitor

To make measurement work for you, it’s vital to have robust processes and systems in place. It may be time to review your “tech stack.” You should have the right tools, proper integration, and automation where you can

The key is consistency.

Many software platforms provide analytics and a management dashboard. Regularly view your goals and metrics to spot trends, catch issues and bottlenecks early, and make informed data-driven improvements. Over time, you build a strong foundation for growth and improvement.

Measure for Strategy – Turn Your Data into Action Plans

Data is good if you use it. Once you have gathered your data, and understand it, it is now time to turn this information into strategies and action plans.

If you notice a drop in customer engagement or donor participation, don’t panic. You have the data and the tools to identify root causes and to develop targeted plans to address any issue.

It often entails only small adjustments – in your value proposition, service offerings, or calls to action – to correct and “right the ship.” This is a continuous process of improvement and innovation.

Optimize Resources – Find High Impact/Low Effort Activities

Many small businesses and nonprofits have limited resources. One of the greatest benefits of what gets measured, gets managed is its capacity to identify high impact/low effort activities.

These are the 80/20, 90/10, 95/5 sweet spots where small changes lead to BIG impact. For example, a 10% change in traffic, conversion, and value can produce a 100% increase in topline revenues. A simple change in one step of the “donor journey” and how you thank donors can dramatically improve retention.

Focus on high impact areas. You’ll produce greater outcomes and save time, money, and resources.

Learn from Feedback Loops - Continuously Improve

Continuous improvement is the name of the game. Feedback loops are a crucial part of this process.

By consistently measuring and reviewing your performance, you create a cycle of ongoing enhancement. Each round of feedback helps you refine your strategies, improve your processes, and elevate your outcomes.

Whether it is daily views of your CRM dashboard, testing pilot projects, or quarterly assessments, regular check-ins ensure you are always moving forward and innovating.

Be Accountable and Transparent - Measure Successes and Failures

As mentioned, measurement brings a level of accountability and transparency that’s invaluable.

When you have clear and agreed upon metrics, it is easier to see what is working and what isn’t. Openness fosters a culture of honesty and responsibility within and throughout your organization.

It also builds trust with all stakeholders - customers, donors, staff, Board members, community leaders, corporate partners. They see tangible results and thoughtful strategies.

What gets measured, gets managed isn’t just a catchy phrase. It is a powerful principle for driving success.

In today’s world, it is easy to find appropriate technology, software, and systems to automate measurement. You will gain knowledge and data-driven insights to effectively navigate the complexities of running your business or nonprofit enterprise.

The secret is to just start. The power of tracking and data-driven decision making will transform you and your organization.