KPI workshop May 2014

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To get the best results from implementing RESULTS.com, we recommend that you start by getting clear on the key numbers that will drive your success.

Research shows that (unfortunately) 92% of companies do a poor job of measuring Key Performance Indicators (KPI's). If that sounds like you, we can definitely help!

What are the key numbers that will drive and predict the success of your current business model? Your teams? Your key people?

\Choosing the right KPI's (and making them visible) tells your people what they need to pay attention to. In other words, KPI's drive the right behaviors.

This workshop will help you choose the key numbers that will help you identify problems early, and solve them fast. If you get these numbers right, they will drive better financial results!

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KPI workshop May 2014

  1. 1. KPI Workshop PRESENTER: Stephen Lynch @StephenLynch #RealKPIs || @RESULTSdotcom
  2. 2. #RealKPIs JOIN THE CONVERSATION ONLINE PRESENTION AVAILABLE POST PRESENTATION: www.RESULTS.com/slides
  3. 3. Questions / Answers: #realKPIs || @RESULTSdotcom
  4. 4. Full participation Questions / Answers: #realKPIs || @RESULTSdotcom
  5. 5. Ask for everyone’s point of view Questions / Answers: #realKPIs || @RESULTSdotcom
  6. 6. Productive conflict is important Questions / Answers: #realKPIs || @RESULTSdotcom
  7. 7. No “group think” Questions / Answers: #realKPIs || @RESULTSdotcom
  8. 8. Make a clear decision Questions / Answers: #realKPIs || @RESULTSdotcom
  9. 9. Everyone commits to the decision Questions / Answers: #realKPIs || @RESULTSdotcom
  10. 10. Key Performance Indicators Questions / Answers: #realKPIs || @RESULTSdotcom
  11. 11. However beautiful the strategy, you should occasionally look at the results “ Questions / Answers: #realKPIs || @RESULTSdotcom
  12. 12. 92% of companies don’t measure KPIs [3] Questions / Answers: #realKPIs || @RESULTSdotcom
  13. 13. Questions / Answers: #realKPIs || @RESULTSdotcom
  14. 14. Questions / Answers: #realKPIs || @RESULTSdotcom
  15. 15. Questions / Answers: #realKPIs || @RESULTSdotcom
  16. 16. RED = Unacceptable performance standard YELLOW = Watch closely. Need help? GREEN = Target performance standard    Key Performance Indicators / Key Metrics Questions / Answers: #realKPIs || @RESULTSdotcom
  17. 17. In the past, we used Spreadsheets / MS Excel Questions / Answers: #realKPIs || @RESULTSdotcom
  18. 18. IDENTIFY WHAT’S HAPPENING IN YOUR BUSINESS RIGHT NOW VISIBILITY INTO WHAT DIFFERENT PEOPLE AND TEAMS ARE WORKING ON IDENTIFY WHICH AREAS ARE WORKING WELL AND WHICH REQUIRE ATTENTION UNDERSTAND WHO’S EXCELLING AND WHO NEEDS HELP Now we use Software Questions / Answers: #realKPIs || @RESULTSdotcom
  19. 19. Key Performance Indicators / Key Metrics Questions / Answers: #realKPIs || @RESULTSdotcom
  20. 20. Everyone knows their own individual accountabilities Questions / Answers: #realKPIs || @RESULTSdotcom
  21. 21. They can also see how other teams are performing Questions / Answers: #realKPIs || @RESULTSdotcom
  22. 22. They can also see how other teams are performing Questions / Answers: #realKPIs || @RESULTSdotcom
  23. 23. Team leaders can drill down to identify the cause Questions / Answers: #realKPIs || @RESULTSdotcom
  24. 24. Looks like one person is holding the team back Questions / Answers: #realKPIs || @RESULTSdotcom
  25. 25. Questions / Answers: #realKPIs || @RESULTSdotcom
  26. 26. Questions / Answers: #realKPIs || @RESULTSdotcom
  27. 27. Questions / Answers: #realKPIs || @RESULTSdotcom
  28. 28. Questions / Answers: #realKPIs || @RESULTSdotcom
  29. 29. What is happening here Craig? Questions / Answers: #realKPIs || @RESULTSdotcom
  30. 30. Questions / Answers: #realKPIs || @RESULTSdotcom
  31. 31. Assign a Task to address the issue Questions / Answers: #realKPIs || @RESULTSdotcom
  32. 32. Questions / Answers: #realKPIs || @RESULTSdotcom
  33. 33. Questions / Answers: #realKPIs || @RESULTSdotcom
  34. 34. Questions / Answers: #realKPIs || @RESULTSdotcom
  35. 35. Always aim for the STARS, if you miss… ..you’ll at least reach the moon Questions / Answers: #realKPIs || @RESULTSdotcom
  36. 36. Questions / Answers: #realKPIs || @RESULTSdotcom
  37. 37. Questions / Answers: #realKPIs || @RESULTSdotcom
  38. 38. Questions / Answers: #realKPIs || @RESULTSdotcom
  39. 39. Questions / Answers: #realKPIs || @RESULTSdotcom
  40. 40. Questions / Answers: #realKPIs || @RESULTSdotcom
  41. 41. Questions / Answers: #realKPIs || @RESULTSdotcom
  42. 42. Questions / Answers: #realKPIs || @RESULTSdotcom
  43. 43. Questions / Answers: #realKPIs || @RESULTSdotcom
  44. 44. Industry / Business Model KPIs Teams / Functional Area KPIs Individual KPIs (What’s your daily / weekly number?) Questions / Answers: #realKPIs || @RESULTSdotcom
  45. 45. Business Model / Industry KPIs (example) Industry Type = (e.g. Restaurant) Performance Thresholds KPI Description Person Accountable Measurement Frequency RED YELLOW GREEN # Customers Chloe Weekly 2700 3000 $ Average spend per customer Rajesh Weekly $35 $40 # Complaints Rajesh Weekly 10 5 $ Revenue per available seat hour (RevPASH) Mark Weekly $12 $15 Labor cost as % of revenue Mark Weekly 35% 30% Questions / Answers: #realKPIs || @RESULTSdotcom
  46. 46. Single point accountability Questions / Answers: #realKPIs || @RESULTSdotcom
  47. 47. Many can be involved, but only 1 person can be named accountable for each KPI Questions / Answers: #realKPIs || @RESULTSdotcom
  48. 48. Industry / Business Model KPIs Teams / Functional Area KPIs Individual KPIs (What’s your daily / weekly number?) Questions / Answers: #realKPIs || @RESULTSdotcom
  49. 49. Activity Effectiveness Outcome # Sales Presentations (activity) % of Prospects that purchase (effectiveness) # Sales -> Sales revenue (outcome) Questions / Answers: #realKPIs || @RESULTSdotcom
  50. 50. Questions / Answers: #realKPIs || @RESULTSdotcom
  51. 51. Team / Functional Area KPIs (example) Team / Functional Area name = (e.g. Fitness Center Sales Team ) Performance Thresholds KPI Description Person Accountable Measurement Frequency RED YELLOW GREEN # New appointments booked Hans Daily average 20 25 % Appointments that did not show up Hans Weekly 25% 20% # Sales Presentations delivered Tyler Weekly 55 75 % Prospects that purchased on the day Tyler Weekly 50% 60% $ Weekly Sales Revenue Jenny Weekly $45,000 $55,000 Questions / Answers: #realKPIs || @RESULTSdotcom
  52. 52. KPI Hierarchies (roll ups) (example) Team / Functional Area name = (e.g. Fitness Center Sales Team ) Performance Thresholds “Parent” Goal KPI Description Person Accountable Measurement Frequency RED YELLOW GREEN # Sales presentations – total team Tyler Weekly 55 75 “Child” Goals Person Accountable Measurement Frequency # Sales presentations - Jeff Jeff Weekly 15 20 # Sales presentations - Marie Marie Weekly 15 20 # Sales presentations - Sergey Sergey Weekly 15 20 # Sales presentations - Arzu Arzu Weekly 10 15 Questions / Answers: #realKPIs || @RESULTSdotcom
  53. 53. Questions / Answers: #realKPIs || @RESULTSdotcom
  54. 54. Industry / Business Model KPIs Teams / Functional Area KPIs Individual KPIs (What’s your daily / weekly number?) Questions / Answers: #realKPIs || @RESULTSdotcom
  55. 55. Imagine this… You are on an extended holiday in the tropics. All you can receive is a weekly text from your business that contains a small handful of numbers (e.g. 5 max) that tell you how well your business (or team) is performing  If the KPI’s are “green” you can go back to sunbathing  If the KPI’s are “yellow” you need to ring the office to see what is going on  If the KPI’s are “red” you need to cut your holiday short and return home What would those numbers be? Questions / Answers: #realKPIs || @RESULTSdotcom
  56. 56. Leadership Team: Industry / Business Model KPIs Industry Type = Performance Thresholds KPI Description Person Accountable Measurement Frequency RED YELLOW GREEN Questions / Answers: #realKPIs || @RESULTSdotcom
  57. 57. Business Model / Industry KPIs (example) Industry Type = (e.g. Restaurant) Performance Thresholds KPI Description Person Accountable Measurement Frequency RED YELLOW GREEN # Customers Chloe Weekly 2700 3000 $ Average spend per customer Rajesh Weekly $35 $40 # Complaints Rajesh Weekly 10 5 $ Revenue per available seat hour (RevPASH) Mark Weekly $12 $15 Labor cost as % of revenue Mark Weekly 35% 30% Questions / Answers: #realKPIs || @RESULTSdotcom
  58. 58. Industry / Business Model KPIs Teams / Functional Area KPIs Individual KPIs (What’s your daily / weekly number?) Questions / Answers: #realKPIs || @RESULTSdotcom
  59. 59. Team / Functional Area KPIs Team / Functional Area name = Performance Thresholds KPI Description Person Accountable Measurement Frequency RED YELLOW GREEN Questions / Answers: #realKPIs || @RESULTSdotcom
  60. 60. KPI Hierarchies Team / Functional Area = Performance Thresholds “Parent” Goal KPI Description Person Accountable Measurement Frequency RED YELLOW GREEN “Child” Goals Person Accountable Measurement Frequency Questions / Answers: #realKPIs || @RESULTSdotcom
  61. 61. Team / Functional Area KPIs (example) Team / Functional Area name = (e.g. Fitness Center Sales Team ) Performance Thresholds KPI Description Person Accountable Measurement Frequency RED YELLOW GREEN # New appointments booked Hans Daily average 20 25 % Appointments that did not show up Hans Weekly 25% 20% # Sales Presentations delivered Tyler Weekly 55 75 % Prospects that purchased on the day Tyler Weekly 50% 60% $ Weekly Sales Revenue Jenny Weekly $45,000 $55,000 Questions / Answers: #realKPIs || @RESULTSdotcom
  62. 62. Team / Functional Area name = (e.g. Fitness Center Sales Team ) Performance Thresholds “Parent” Goal KPI Description Person Accountable Measurement Frequency RED YELLOW GREEN # Sales presentations – total team Tyler Weekly 55 75 “Child” Goals Person Accountable Measurement Frequency # Sales presentations - Jeff Jeff Weekly 15 20 # Sales presentations - Marie Marie Weekly 15 20 # Sales presentations - Sergey Sergey Weekly 15 20 # Sales presentations - Arzu Arzu Weekly 10 15 KPI Hierarchies (roll ups) (example) Questions / Answers: #realKPIs || @RESULTSdotcom
  63. 63. Questions / Answers: #realKPIs || @RESULTSdotcom
  64. 64. Industry / Business Model KPIs Teams / Functional Area KPIs Individual KPIs (What’s your daily / weekly number?) Questions / Answers: #realKPIs || @RESULTSdotcom
  65. 65. Questions / Answers: #realKPIs || @RESULTSdotcom
  66. 66. Questions / Answers: #realKPIs || @RESULTSdotcom
  67. 67. Specific Measurable Achievable Relevant Time bound S A M R T “SMART” Goals Questions / Answers: #realKPIs || @RESULTSdotcom
  68. 68. Individual KPIs What is each person’s daily / weekly number? Performance Thresholds KPI Description Person Accountable Measurement Frequency RED YELLOW GREEN Questions / Answers: #realKPIs || @RESULTSdotcom
  69. 69. Review KPI performance thresholds every quarter Review red, yellow, green thresholds to make sure they are SMART – especially “achievable” and “relevant” based on your strategic reality / seasonal factors / other trends Confirm each person “buys in” to the performance threshold and is willing to be held firmly accountable for their KPI being “in the green” as part of an ongoing monthly review of their performance Questions / Answers: #realKPIs || @RESULTSdotcom
  70. 70. By what day each week / month will the KPI data be posted? What 1 person will be accountable to post this data? List your answers below: Questions / Answers: #realKPIs || @RESULTSdotcom
  71. 71. Questions / Answers: #realKPIs || @RESULTSdotcom
  72. 72. They wish they had dealt with poor performance sooner! #1 Regret of Business Leaders Questions / Answers: #realKPIs || @RESULTSdotcom
  73. 73. “He that is good for making excuses is seldom good for anything else.” Benjamin Franklin Leaders owe it to the organization & their fellow workers, not to tolerate non-performing people in important jobs – Peter Drucker “ Questions / Answers: #realKPIs || @RESULTSdotcom
  74. 74. “Accountability is meaningless without consequences” What positive consequences can the person accountable expect if their KPI is consistently in the “GREEN” at the end of the month? What negative consequences can the person accountable expect if their KPI is consistently in the “RED”… • For 1 month? • For 2 months in a row? • For 3 months in a row? • For 4 months in a row? Questions / Answers: #realKPIs || @RESULTSdotcom
  75. 75. KPIs – getting it right Growth inhibited by: - Wrong person in the role - Wrong KPIs - Too many KPIs - Unrealistic performance thresholds - Not keeping KPI data current and visible every week - Not holding person firmly accountable for performance - No consequences for poor performance - Waiting too long to address poor performance Growth maximized by: - Right person in the role - Right KPIs - Realistic performance thresholds – adjusted regularly - KPI data kept current and visible every week - Person held firmly accountable for performance - Progress praised and recognized
  76. 76. #RealKPIs JOIN THE CONVERSATION ONLINE PRESENTION AVAILABLE POST PRESENTATION: www.RESULTS.com/slides
  77. 77. Strategy Centre 1-Page Plan
  78. 78. Strategy Centre Thought Leadership Library
  79. 79. RESULTS focused management dashboard A COMPLETE SOLUTION FOR SMB IDENTIFY WHAT’S HAPPENING IN YOUR BUSINESS RIGHT NOW VISIBILITY INTO WHAT DIFFERENT PEOPLE AND TEAMS ARE WORKING ON IDENTIFY WHICH AREAS ARE WORKING WELL AND WHICH REQUIRE ATTENTION UNDERSTAND WHO’S EXCELLING AND WHO NEEDS HELP
  80. 80. FOR CEOs and business leaders of fast growth SMBs WHO are trying to take control of their business, engage their workforce, and achieve extraordinary RESULTS OUR PRODUCT IS A RESULTS focused management dashboard THAT PROVIDES transparency into your entire organization from company-wide strategic goals to individual tasks UNLIKE other software providers, we offer SMBs the complete suite of tools to manage their business and engage their team OUR PRODUCT engages your workforce to accelerate your success OUR PURPOSE to end employee disengagement by reprograming management
  81. 81. #RealKPIs JOIN THE CONVERSATION ONLINE PRESENTION AVAILABLE POST PRESENTATION: www.RESULTS.com/slides

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