More than the numbers

For many years, leaders have bought into the false belief that business is all about numbers. Organisations and leaders spend a lot of time setting up systems to measure external outputs. They determine how the organisation is performing by measuring sales, return on investment (ROI), cash flow, share price and so on.

While this data is important, it comprises by-products of past performance (or lag indicators) that have limited impact on future performance.

Focusing on these details alone is a bit like a bikini. It hides what is most revealing about the organisation – what activities the people in the business are undertaking to support future growth.

Numbers don’t run a business – people do. Numbers can’t make decisions and products or execute a vision. Numbers tell you what, but people tell you why.