Friday, 22 June 2012

What Gets Measured Gets Done

Our heading is a quote from management guru Peter Drucker and relates to setting and achieving KPI's for business, but we have a problem at QVM.
We have this divide (some call it a chasm) between traders on one hand who, in simplistic terms, measure $ sales, and QVM management who measure rent returns. It is not quite as simple as that because QVM also have their own businesses (cooking schools, tours, and training) which are similar to our own businesses. The point is that the responsibility for marketing and attracting customers over the whole site lies predominantly with QVM. QVM have a responsibility for our trading environment generally. ....cont'd - click on heading for more.

So, getting back to our heading, what do we measure? The overwhelming bulk of business at QVM is done by traders through stall sales yet the key measure of performance for QVM is rent returns and, in a tenuous link to traders, visitor numbers. We are not comparing apples with apples.

Many of our larger retail centres have direct links with each retailer’s sales data so they do measure sales performance. The Australian Retailers Association recently announced plans for a simple sales trend analysis by Roy Morgan Research where retailers SMS a "better", "worse", "unchanged" response at the end of each week. Here, in the top end of the QVM, traders record more sophisticated data each week by asking a representative group of traders how they performed against a set minimum sales target. The result is a percentage figure of sales versus expected sales.

Until we draw the link between traders $ sales and QVM performance (attracting customers) we are not measuring anything of relevance to overall market performance (except rental returns for the landlord).