Most of us don’t like to be measured on things that we don’t have control. This mindset leads to measurements that are trivial and end up overlooking things that you could have done to bring in better performance.
For example, market share is an important performance indicator as it represents the percentage of the total industry sales your business has. There are many factors that affect market share. Some are within your control and others not. You have control over product appeal, pricing, innovation, and customer retention strategy. But you don’t have control over things such as competition and the economy which affect the demand for your products.
Does that mean you don’t want to measure market share?
Certainly not. Even though you don’t have control on all the factors that impact your market share, you have influence over the products you offer, the programs and campaigns you run, and the approaches you use to differentiate yourself from your competitors and how you deliver exceptional customer experience. By understanding the positioning of your competition, you can implement strategies that influence customers’ choices, and hence your market share.
It doesn’t make sense to avoid measuring results that are important for your business but you don’t have control. The issue is not about control but what you can do to influence the outcome.