Why KPIs Matter: A Look into Micromanagement and Better Options

This is a guest post from Jill Goodwin (see her info at the end…) – thanks Jill…!

“Micromanagement is the destroyer of momentum.”—Miles Anthony Smith

Many business leaders are so dedicated to reaching their goals that they micromanage their teams to ensure tasks are carried out optimally. And while this does seem like an effective strategy at first glance, micromanagement can have serious consequences that actually hinder growth in the long run.

The truth is, management’s way of completing tasks may not always be the most efficient, effective, or productive way of doing things. Plus, many employees will resent being micromanaged, even if it’s done with the best of intentions. Luckily, there are other approaches that business leaders and management teams can use to track their organizations’ performance and growth without frustrating or alienating valuable employees.

Read on as we explore the dangers of micromanagement for your business, and how you can use KPIs (key performance indicators) to minimize micromanagement while still accurately tracking success.

The Dangers of Micromanagement

Micromanagement has negative associations, and these dangers prove why:

Losing Control of Your Team

When you micromanage your teams, you’ll eventually create a system in which you need to control them at all times. If control is your only true management tool, you risk losing this control and losing touch with your employees in the process. This will leave you with a demotivated and unproductive workforce.

Instead of micromanaging and vying for full control over your team, remember that there are numerous different management styles you can use. These styles will also motivate them and earn their respect and effort without making them feel overly scrutinized. Remaining open to different styles of management—especially those that work best for your team—will improve communications and ensure that your team is easier to manage.

Creating a Dependent Team

If you micromanage your employees for long enough, they may start to rely on you for constant affirmation, approval, and guidance. They may also struggle to complete tasks without your input. Micromanagement creates a system in which your team feels that they need your approval for everything they do. This can end up straining your own schedule and leaving you feeling burnt out.

Every one of your employees should be free to put their own talents, abilities, skills and insights to good use towards reaching your organizational goals. The more they can do so autonomously, the better they will be able to effectively solve problems without your intervention. This will leave you with more time to handle high-value business tasks. It will also motivate your team members to put their knowledge to the test and gain new skills as they learn.

Damaging Employee Trust

Micromanaged teams eventually begin to lose trust in their managers. Your team members may not see you as an approachable manager. Rather, they’ll see you as a controlling supervisor who’s always ready to point out their mistakes.

When you erode the trust between managers and employees, you’ll eventually suffer from serious losses in productivity. Eventually, your employees may begin to look for positions elsewhere. This will spike your employee turnover rates and the associated expenses for your business. Giving your staff autonomy and the freedom to make their own choices builds trust and respect, while micromanagement eliminates them.

Using KPIs to Reduce Micromanagement and Track Business Success

KPIs, or key performance indicators, are essential business metrics that can help to eliminate the need for micromanagement. They enable businesses to track their progress towards their goals without managers needing to keep track of every move their teams make.

Certain KPIs, like revenue, MRR, client acquisition rate, and new recurring revenue, can help you to determine your organization’s strengths and weaknesses. Additionally, they can optimize performance by setting and monitoring customized metrics. KPIs are quantifiable and help businesses to measure progress easily and accurately. They also identify a business’s underperforming areas, allowing leaders to find the root issues and develop better strategies for growth.

Tracking and monitoring your KPIs in real-time can provide you with clear insights into your company’s performance, your team’s productivity, and whether you’re on track to reach your goals. This approach gives you an idea of what must get adjusted, changed, and achieved with your strategies, without requiring micromanagement.

Why KPIs are a Superior Solution

Unlike micromanagement, KPI tracking can consistently enhance your business’s performance without any invasive or potentially harmful management techniques.

Tracking your KPIs can boost your business’s performance by allowing you to set informed goals and measure your performance and progress towards them. KPIs can also show you how effective your current strategies are and highlight where they should get adjusted for the best results. They provide valuable insights that will empower you to improve your business and stay one step ahead of the competition.

The process of KPI tracking can also increase collaboration between your team members. Teams can quickly and easily interpret KPI results themselves, allowing them to autonomously pursue new opportunities and identify areas that need improvement. By including your teams in your KPI tracking process, you can encourage them to work together and brew up creative new ideas that will benefit your business in the long run.

Using KPIs to track your business’s growth can enhance your risk mitigation strategies. KPI tracking allows you to compare past and present data sets to find out which of your business strategies carried the least risk, and which were the riskiest. You can then use this information to create risk-protected strategies that help to minimize losses and ensure resilience.

Last but not least, KPI tracking will improve the quality of your business’s decision-making processes. The right tracking tools will give you access to easy-to-understand datasets about how your business is performing, allowing you to make decisions with confidence, knowing that they’re based on sound insights. This may mean rethinking who works on specific projects, your approach to employee scheduling and the number of people you assign to specific shifts, or the way you implement training programs. 

At the end of the day, better decisions make for better operations, which can improve your profitability and build more operational sustainability to boot.

In Summary

Micromanagement may be a popular, or at least common, management approach. However, it’s often fraught with challenges and dangers that could demotivate your team and harm your business.

Replace micromanagement with KPI tracking to assess your organization’s performance and improve your strategies without putting strain on your talent

Jill Goodwin – Content Master & Writer of Amazing Ideas

Shawn Kinkade Kansas City Business Coach