How do you measure up?

I say it’s an uncomfortable question because although we might like to know how we compare to others there is also an implicit challenge.  Are we good enough?  Regardless, all human beings either know, or want to know, where we stand relative to others.

This translates importantly into how we measure the success and performance of our businesses.  If I’m right about all of us wanting to know where we rank – and I believe I am – then how do we measure our success?  And, very importantly, if we measure does the very act of measuring improve our success?

In the insurance agency business there are several organizations that track agency performance and I’ve written about those before.  One of them, MarshBerry, is a consulting firm which works with high performing agencies.  Recently, in their newsletter “for the RECORD” they looked at the question of what difference measuring makes.  They looked at two groups of agencies they work with: those who consistently measure key financial and productivity metrics and those who don’t.

What they found isn’t surprising to me.  MarshBerry quoted the old adage “what gets measured gets done” as the overall result of their investigation.  Those who measure have EBITDA (earnings before interest, taxes, depreciation and amortization) 10% higher than those who don’t. 

 What does this mean?

Simply, it means that those who measure make more money, are more profitable, grow faster and are worth more than those who do not. 

 All of us are in this business – ultimately – to make money.  If measuring our progress regularly is an important component of maximizing the return on our time and investment – and it clearly is – why would we not do it?  I can think of no acceptable reason.

So, let me ask “How do you measure up”?

If I can be of further help to you with this please contact me.

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