Welcome back for engineering, I hope you're having an absolutely brilliant day and the universities looking after you. So in today's module, we're going to cover how you start to predict the future performance of your businesses and how you determine where the greatest opportunities for improvement are hiding. So you can be armed with the knowledge to accurately navigate your business and make quality predictable leadership decisions. Now, please keep in mind what we learned in the previous module. I covered the subject of risk in our previous module first, because it is a fundamental component to truly understanding why this module is so important. So let me start by asking, do you think that if you could predict the future that you would increase or decrease your level of risk in decision making Of course, the answer is pretty obvious, you would decrease it correct.

But the future is invisible, right? You can't see it. Well, what I'm going to do is show you how to make what appears to be invisible in your business right now crystal clear, so you can see into the future. So let's get into it. Now. There are really only two mistakes that you can make in a business.

So what are they well act when you should not act and not act when you should. So how do we know how to avoid both of these mistakes? Well, the answer is actually quite simple. There is a saying and it goes like this, that which remains that measured cannot be improved. And why? Because there is no basis upon which to gauge the improvement.

Now, you may recall hearing me say that statement in a previous module, but let me give you an example to illustrate this point for you really clearly. Some time back my, my team and I were consulting to one of our private clients. She's a very successful dentist and was looking to refine and improve her business on a number of levels. But I'm only going to speak about one of the components the We the components I should say that we worked on in her business. Now at the time, she was spending approximately $18,000 a month on a month on radio advertising. Now, that's over 200,000 a year, which is, you know, a chunk of money in anyone's book.

Yeah. And you'd want to make sure that if you were spending that money that you were getting a good return on investment, correct. The problem was that she had no way of accurately monitoring and measuring the results in her business. And it wasn't because she was lazy because she's an incredibly hardworking individual. And it wasn't because she wasn't aware of the audio that we're discussing. He, she was just so busy, which I'm sure as a business owner, you can appreciate.

Now, as soon as I became aware of this particular expense in her business, it piqued my interest. And I asked her, what's your ROI on your advertising, ROI being return on investment? Basically, I was asking her How do you know If your advertising is working, and she responded with this, I've been doing it for 20 years. So I know it works. Now as soon as she said these words to me, I heard the voice of one of my first mentors in my head saying these words. What do you know?

That isn't so? And you might want to write that one down. What do you think, you know, that actually isn't correct. Me, he say to her that advertising spin was completely logical and completely rational. Because she was blinded by her experience and knowledge. That to her was completely logical and completely rational.

You see, every expert is blinded by their expertise. your expertise is both your greatest asset and your greatest liability at the same time, because your expertise blinds you to things right in front of your face, because that which we know, we rarely question. So being aware of this liability is a huge advantage. Anyway, back to the point about her advertising. So we implemented a measurement tool around the this particular component, and the results were nothing short of startling. Now, the other thing that was actually going on here as a slight tangent was that that was very, very interesting was that she was being schmoozed is probably the only word Are the radio advertising sales rep who is coming in and taking her to lunches and dinners, wining and dining her, etc.

You know, as you can imagine the she was spending a lot of money with the with them and they weren't to keep her happy. Anyway, in addition to measuring current data, we were able to go back through some other data that she had stored, which assisted us in being able to quickly produce a sufficient timeline of data to base your decision on. But effectively within a month, she was able to work out that the 18 grand she was spending every month was getting her on average 1.3 leads per month. And that wasn't 1.3 sales that was leads. So what we were able to assess very quickly was that she was literally burning through hundred dollar notes. And that was from just one parama parameter that we identified and measured.

Now we reallocated some of that A marketing spin because it needed to be spending more in the right places. But effectively, we put 150 grand back in her pocket in one decision, because we were measuring and we had a basis from which to determine whether something was working or not. Obviously, in this particular case, it was not. Now from there, we were able to monitor moving forward, the different types of marketing that she was engaging. We implemented three principal means of marketing and determined that the ROI on those three different forms of marketing were hundred 93 203 44 and 346%, which means that for every dollar she spent on marketing she bought in $1 83 $2 44 or $3 46. Now, have you had money to invest in marketing or invest anywhere for that fact?

And you had three options that brought in those three returns? Where would you invest your marketing dollars? Would you invest the marketing that produced a return of $1 83 for every dollar you spent? Or would you invest your marketing in the place where it returned? $3 46 for every dollar you spent, of course, the answer is obvious when you have the the actual numbers but if we hadn't been measuring it, what would she have been doing? She would have been guessing.

Right? You see, measurement makes the invisible visible. More importantly, it allows you to enhance your ability to predict future performance by providing you accurate data upon which to base those decisions. And this is where the goal is, you actually don't have to make any decisions at all. If you measure the areas for improvement or opportunity clarify themselves, the guesswork is taken away by the process. The only sticking point is that you have to learn to put your ideas and opinions of what you apparently know, should and shouldn't be done to improve performance to the side and rely upon the verifiable data.

Remember, we don't want to be right, we want to just get it right. Because just like the case of our dentist, where her perspective of her advertising appeared, totally logical and totally rational to her. So your perspectives will appeal to you. But numbers don't lie. Imagine this. Imagine if if If Imagine if you had been taught to believe that six times five equals 20.

And imagine if that was your only experience that equation. So you believed it completely? Would it not seem perfectly logical and perfectly rational to you that that was the correct answer? Of course it would. But what if you got verifiable data? from five calculators that confirmed the answer was actually 30?

And your future prosperity depended on the answer? Which answer would you take action on? Obviously, the answer is simple. You would take action on the 30. But you see, it's simple because you actually know that six times five equals 30. You know the answer.

I'm not asking you to go against what you already know, to be accurate. But when you get verifiable data from measurement, this is often what you need to do. Often you need to go against what you think is correct. You'd be amazed at the number of businesses As I have worked with and mentored with over the years who have still relied upon their own opinion, and made decisions to their own detriment, despite me providing them vast amounts of measured data to the contrary. You see, in business many decisions, actions or solutions are bad mainly because of false educational data, false perception of data, false input of data, or even more often no data at all. But you have to embody this immutable law because providing, providing, of course that the input data is accurate, it will serve without flaw because numbers don't lie.

Measurement makes the invisible visible. Now, for most of us in the real world, you can't measure everything. So what you have to do is identify and then measure the key indicators in your business. They will have the biggest impact in the shortest amount of time, just like we did with our dentist. I can't tell you what they actually are because every business is different. But I can tell you that when you do, the data will, with vastly improved accuracy tell you when and how to act to create predictable performance and quality improvement, just as it did rapidly without dentist.

So the flip side to this coin is how do you know when not to act simple when you don't have enough verifiable data? So often, we're told, don't just stand there do something. But what I'm saying to you here is, don't do anything. Just stay there until you have enough verifiable data to make the right direction to make the right decision CLI otherwise, you'd Doing what? You're just guessing? And is guessing a risk worth taking?

Or is it a risky move? Now, I'm not saying there isn't times when you have to make a decision. Sometimes in business, you just have to make a decision with the information you have on board, the best you can at the time I get that. The problem is, most business owners spend a lifetime doing this guessing without even knowing that's what they're doing. But what I'm doing here is bringing to your attention that you have the ability to change the game, you can predict the future performance of your enterprise by understanding what is working and what is not working. But you can only understand that if you measure and then analyze that data.

Remember What is the ultimate goal of thought engineering, it's to place you in the most optimal position for opportunity, potential prosperity, profitability, and abundance. And measurement is an absolutely vital aspect of attaining that position, learn and embody the immutable laws that one measurement makes the invisible visible, and to that which remains and measured cannot be improved. The next module is our last and what I'd like to cover is the hidden secret to growth that is understood by only a very small portion of individuals on the planet. So you can really embody and begin to put this knowledge into your daily life. So until we meet again, in the next module, please basically, think clearly and have an absolutely incredible day.