Shared meaning.
THE PROBLEM
Two people reporting the same metric, differently.
WHAT CAUSES IT
No agreed definition.
WHAT NEEDS DEFINING
What counts as a customer What counts as a sale, and when it is recognised What counts as an enquiry What period a month covers Which costs are included in margin
THE RECOGNITION POINT
When an order is placed, delivered, invoiced or paid are four different dates.
Which one a metric uses changes the answer substantially.
WHAT TO WRITE DOWN
Each metric, its exact definition, and its source.
WHERE TO KEEP IT
One page, alongside your reporting.
WHAT TO DO WHEN A DEFINITION CHANGES
Restate history on the new basis, or the trend is meaningless.
WHAT TO CHECK
That everyone reporting uses the same definitions.
HOW
Ask two people to produce the same figure independently.
WHAT TO AVOID
Definitions varying between reports Changing quietly
