In Productive Profits, I discuss that founders and leadership teams must have a finger on their company’s pulse while looking at the horizon of their vision, goals, and mission.
When it comes to making difficult decisions or answering a series of complex questions we need an intake of the proper metrics associated with the decision at hand.
To strategically do this, I recommend looking at both soft and hard metrics.
Hard metrics:
Is the actual data that is being measured around the area of the business we are making a decision on. If we are not measuring, well get to it. The only way to make (good) strategic decisions is with information. Ideally, that information is accurate.
Soft metrics:
Are the qualitative data points associated with the decision at hand. Employing empathy and leveraging your emotional intelligence is key here. Not everything is binary with soft metrics. It’s useful to get opinions from trusted advisors and experts who have faced a similar situation to support this side of the equation.
By having a pulse on both the soft and hard metrics in your company, you’ll be better enabled to make sound strategic moves.