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Metrics are a simply set of measurements that we use to quantify results. In business, they are commonly used to measure important, limited resources. A metric can be used as a measurement of success — how well we are using what is being measured.
If you are operating an aircraft for business, you should have some metrics that show the value of the aircraft to your organization. Some measurements are easy: hours flown and passengers carried. Many metrics involve costs to operate the aircraft, whether that is done via a budget or by other means. Those measurements are all important, especially costs are I’ve discussed before. But, which of those help establish the value of the aircraft to your organization?
Seth Godin writes a blog that deals with being productive and creating value in your work. He comes from a tech background, but the topics he covers apply to all sorts of skilled work. In a recent blog post, Seth brings up two important things about measurements:
- The thing that you measure should be something that you want to improve.
- Many organizations measure what is easy, not what is important.
He makes the point that many organizations pick an easy metric and then that becomes their focus. Be wary that the easy metric may have the unintended consequence of improving something that has little value to the organization.
The use of an aircraft for business most often involves a finite resource: time. The richest person in the world and the poorest all have only 24 hours in their day. The value to the organization of the individual’s time is in relation to the impact they have within the organization. The business aircraft can help reduce the low value use of time spent traveling and allow for the high value time spent being with important customers or in creating things that add value to the business.
So time could be a good metric. But is hours flown the metric you want to measure? If we are focusing on “improving” this metric, would a decrease in hours flown represent an improvement? Maybe, but maybe not. If you are a commercial operator who is being payed a fixed price to deliver something, reducing the time needed is one good metric.
In aviation, we have to measure the hours flown. But the use of those hours flown may not be a good measure of how well your operation is accomplishing its mission. If you are involved in the transportation of senior executives, more valuable but harder to measure metrics might include:
- Time avoided traveling by less productive means (airlines for example).
- The value of that time (based on the executive’s salary and worth to the company).
- The number of high value trips that the aircraft enables.
These are not easy measurements, but they can be used to clearly show the value of the aircraft. Then the cost metrics of how much this service costs can be placed into its proper perspective. The improvement focus can be in increasing the use of the aircraft in flying those most valued trips in a cost effective manner.
The value of the executives’ time is a difficult measure and one that the aviation department has no authority to declare. But, successful companies do value their employees’ time and should be making efforts to increase their productivity. This is where the business aircraft has no equal.
There are many more metrics that can be used (dispatch reliability, aircraft availability to throw out but two). What metrics do you report and how many are being used to generate improvements in your services? Click reply and let us know.