Defining the Right Performance
Metrics for Your Business
BY JULIE GALLAGHER
communications to customers and investors, and
defining a sense of purpose for employees.
Donnan cites as an example Apple's mission:
"Apple is committed to bringing the best personal
computing experience to students, educators,
creative professionals, and consumers around the
world through its innovative hardware, software,
and Internet offerings."
Also important is a company's vision
statement, which describes the desired future
position of the company, says Donnan. Apple's
vision statement is: "We believe that we are on the
face of the earth to make great products and that's
not changing."
T
hough it may seem like a daunting task,
determining the right performance metrics
for your business typically starts with a basic
but crucial question: "What is the purpose of the
company?" says Dave Donnan, president of Silvertip
Management.
An entrepreneur should start by creating a
mission statement that defines a company's business,
its objectives, and its approach to reach those
objectives, he says. It should be well articulated
and help simplify otherwise challenging decisions
by enabling focus and prioritization of resources,
providing transparency on what a company will
and won't do, establishing guardrails for investment
opportunities, enabling consistency within external
Dave Donnan, president of Silvertip Management,
outlines the steps entrepreneurs should take to
establish objectives, goals, strategies, and measures.
48 SPECIALTY FOOD SPECIALTYFOOD.COM
SPECIALTY FOOD
MAKER
