Building a Metrics-Driven Culture

Originally written for @Tecdonor.

Gone are the days when data was just a luxury for the business elite. Data is a necessity for big  and small businesses alike, and thanks to the rising of the digital age, now more of it is available  than ever before.  

Data is changing the way we live and work. Both for businesses and nonprofits, metrics can  provide valuable insights into operations, business practices, and customer/donor behavior,  shaping the way companies make their most important decisions.  

Focusing on the right data drastically improves a company’s chances of success. But it involves  more than the occasional report and analysis of numbers. Truly successful companies keep  metrics as the core driver of their goals, defining culture, strategy, and growth.  

If the idea of a metrics-based culture causes you to hesitate, you’re not alone. Many businesses  starting out prefer to embrace the entrepreneurial spirit of following their gut instinct rather than  data, focusing on production quality instead of numbers. However, research shows that  companies who implement a metrics-driven culture from the get-go tend to do better in the long  run. Since numbers don’t lie, we’ll let the stats speak for themselves.  

A report by the Aberdeen Group shows that data-driven organizations experience a 27% year over-year increase in revenue, while other organizations only see a 7% increase. Plus, 12% of  organizations reduced operating expenses from one year to the next, compared to 1% of others. Another study by Forbes Insights revealed that data-driven organizations are over six times  more likely to report achieving competitive advantage in increasing profitability (45% vs. 7%).  

Embracing a metrics-driven culture is a promising approach for organizations that are looking to maximize the probability of their success. And while implementing a cultural shift within your  organization may pose some challenges, we’ve got a few tips to help you with the transition.  

1. Choose the right data.  

Not all data is created equal. In order for numbers to provide clarity and insight rather than stress and confusion, it’s important for your organization to define key performance indicators.  Strategically set your metrics, but don’t feel like you need to measure everything. Instead, determine your metrics based on what matters most to your business.  

Justin Moore, CEO of Axcient, provides insight on where to start: “The key to effective  measurement is knowing what to measure. First, you have to really know your business, starting  with your core values, vision, and company mission.”  

Asking yourself questions can help: Which things will most impact your business in the next  year? What are your specific revenue objectives? Knowing your objectives can provide  clarifying answers and help you hone in on which data is most beneficial to your company’s  goals.  

2. Communicate goals with employees. 

Once your high-level goals are set, communication is key. Share your new vision. Help new  employees get on board with a data-driven attitude. If you truly want to adopt a culture built on  metrics, everyone must play a role.  

Keep in mind the data is worth more when people can derive value from it. Bring a sense of  alignment and collaboration to your company by explaining how each team member plays a role  in achieving your KPIs. Break down larger organizational goals into individualized tasks and  objectives, giving each team member a personal goal to pursue that plays into your overall  metrics-guided strategy.  

3. Create easy-access to data.  

As employees are working towards specific goals, it’s important that they have a way to monitor  their progress. Unfortunately, many organizations face the challenge of gathering data in one  location, keeping it updated, and hosting it in a place where all employees can access it.  

With the right tools, your company can provide an easy-access dashboard with real-time  updates that spur on your employees to reach their KPIs. Anthony Thomas, co-founder of data driven company Sticker Mule, explains how a company’s transparency with data can ignite  motivation in the workplace. With status-trackers available to every department, “Everyone can  see how their efforts are making a difference, and it inspires us to keep working on it. It’s human  nature to want to see those numbers improve.”  

And improve they will.  

With clear metrics lined out for your company’s goals, effective communication that highlights  the value for your team members of adopting a data-driven focus, and company-wide access to  track your progress, your business will undoubtedly experience the growth and productivity that  can only come from a metrics-driven culture.  

Getting Started.  

Here at Tecdonor, we are passionate about maximizing your chances for success as an  organization. That’s why we created an innovative, easy-to-use platform that hosts insights  integral to your company’s health and growth. Built for both businesses and nonprofits,  Tecdonor can provide analytics and information to strategically guide your company’s biggest  decisions.  

Analytics for Businesses  

Businesses that use Tecdonor to manage their Corporate Social Responsibility programs can  connect with nonprofits and schedule volunteer opportunities for team members. Tecdonor can  even automate donations towards your favorite causes. As your company participates in social  responsibility efforts, you’ll be able to monitor your employees’ engagement (including where  they’re volunteering and how much), track your charitable giving, and accurately report how  your company is making an impact.  

Accessing these important analytics on employee engagement can help your company  understand how to best invest your time and resources when giving back by following the lead  of your most engaged employees. After all, effective employee buy-in for social responsibility programs starts with listening to employees and helping them pursue causes they’re already  passionate about.  

Businesses that participate in our marketplace not only benefit from free marketing for their  products but also from the customer analytics they gain from those who engage with their  brand. Sell your product and establish brand awareness, and you’ll be able to track product  performance, learn about who your customers are, and analyze marketing metrics.  

Take, for example, a brick and mortar store with no clear cut way to analyze their customer base. With Tecdonor, you can have free access to insights on who is most interested in your  brand, which products they like best, and and which other organizations they’re connected with.  

Analytics for Nonprofits  

Nonprofits can also benefit from the easily-accessible analytics provided by Tecdonor. Our  platform manages all your volunteer information and insights, meaning you can track hours,  donations, individual profiles, and overall engagement of those connected with your  organization. With more insights than ever on donors, donations, and volunteers, you can now  tackle donor acquisition and volunteer recruitment with a strategic plan to help you meet your  fundraising goals.  

The task of building a metrics-driven culture is now simple enough to start today. Sign up for a Tecdonor account to start managing your metrics and setting new company goals that mean  better business and bigger impact!