Businesses are systems, and all systems are dynamic, so businesses are dynamic. So far the logic is inescapable. If businesses are dynamic, and if they operate within a changing context, then the dynamics will be complex. Are you still with me? An analogy might be a more simple way to make my point though, so I'll compare a business organization to the human body.

The body is a complexity of inter-related systems operating within a changing environment. The body changes, constantly, in its attempt to adapt to the changes it is experiencing. When it is successful, the body lives and even grows and prospers. When it is not successfully adapting, it tires, sickens and perhaps dies. Businesses, and their integral parts are the same.

Let's deal at the 'Business Unit' level. The Business Unit needs to know, on a continuing basis, that it is alive, healthy and growing. So do the many other dependent parts within the organization, for its health and success can directly affect them too. The signs and symptoms that indicate health and resiliency are many and varied. Some of them are direct and obvious, others less so.

Reliance on some of these signs and symptoms, those which are easy to monitor, isn't always the best way. The absence of a headache does not connote health, and an increase in top line revenues doesn't necessarily indicate business success. There are some indicators for the body which are a sure sign of a problem, such as a fever, a weak or erratic pulse, and/or labored respiration. Similarly, there are some key indicators within every business that will indicate the presence of a problem. These indicators do not always tell you what the problem is precisely, but they tell you enough that you should invest time and effort in finding an accurate diagnosis and perhaps a cure.

Some indicators are internal while others are external to the organization. Some are tangible and easily measured, others are less so. All need to be monitored close to the source, using the most simple, reliable method available. Every business has its own particular indicators - we call them Critical Measurement Indices or CMIs.

The nature of the business has a profound impact on the choice of CMIs too. While the same indicators may be selected as CMIs, they can carry different weights to reflect the variable effects of economic, technologic and regulatory realities. In today's volatile and unpredictable markets, no two organizations are identical, even within the same industry. Just like everyone else, we are unique!

So what does all this mean? Simply this – if we want to survive and prosper, we must monitor our organizational health on a regular basis. This is achieved by first selecting and agreeing on the impact of those CMIs that relate to our business today. Secondly, every business unit has to carry its load, since all parts of the organization, like all parts of the body, are inter-dependent. Lastly, we need to consider firm contracts for performance among key 'players' in the business. There's no room for passengers, we need objective Performance Management.

One proven model of Performance Management is detailed in the Staying in Touch section of the Andros website. It's yours to peruse and consider. Can you really afford to take blind risks with your key operations? Take a moment to visit with us now.