Importance of Impact in Performance

"...in 2017, Apple made 18% of the world's smart phones, but gained 51% of the global revenues from smart phones and 86% of global profit pool. Apple succeeded not by doing more than its competitors, but by making a greater impact..." 

Anthony Mitchell 2019 

With increasing competition, organisations have to go beyond simply conducting activities; it is about impact. 

Don't confuse effort with impact, ie rewards should be for those who have the impact and not for those who work longer hours but have little impact

Four key steps to focus on impact, not activity 

i) every measurement should be related to impact, ie customer retention, focus on high value customer to organisations; impact-based measurement tends to improve outcomes, improve brand recognition, cost per acquisition, etc. Focus on people making good short-term decisions that will result in greater long-term impact, eg enabling staff to address customers' issues directly rather than following bureaucratic processes, etc. 

"...what you should do is praise those who create or deliver the most value in the least time..." 

Anthony Mitchell 2019 

ii) know where your opportunities are to increase impact. For example, customer impact should focus on the 6 things they value: 

- quality

- value for money

- service

- convenience

- distinctiveness

- personal relevance
 

NB Know where you need to increase customer impact, eg if speed is the number one issue, then direct efforts towards improving this area 

iii) learn to say no. If ideas are not connected to improving target areas of impact, don't pursue them. 

iv) be a role model. Demonstrate that you are focused on impact by eliminating activities that don't focus on it; focus on the organisation's priorities 

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