Business Mentors Leadership and Business Development Summit April 28, 2011

Business Mentors Leadership and BusinessDevelopment SummitApril 28, 2011Presented By: David Ellings

The Sajzel Group, Inc.

LEVERAGING YOUR LEADERSHIP

Questions How many are company owners? Your organization provides you a job? When do you create the exit strategy? If you were not involved your company

would fail?

The Sajzel Group, Inc.

What happens to your business if you get hit by the bus???….A Life Changing event

The Sajzel Group, Inc.

Sobering StatisticsAfter 3 Years

89% small businesses don’t survive 62% mid sized don’t survive 68% fail with a partner About 1/3 fail when not part of day-

to-day operations

The Sajzel Group, Inc.

What Does It Mean? To get buy-in Marketing and sales perspective Influence industry direction

Work on and not in your company

The Sajzel Group, Inc.

Road MapFive Essentials for Success

1) Idea2) Strategy3) Execution4) Metrics 5) Accountability

The Sajzel Group, Inc.

OPM

OPT

Common Success Ingredients

Other peoples money

Other peoples time

The Sajzel Group, Inc.

OPT Other peoples time

A leaders ability is limited by his effective use of other peoples time -Winston Churchill

The Sajzel Group, Inc.

Road MapFive Essentials for Success

1) Idea2) Strategy3) Execution4) Metrics 5) Accountability

The Sajzel Group, Inc.

Metrics KPI’s 2 Types

Historical – Items of interest. These recognize past performance but don’t provide insight of future problems and outcomes

Predictors – short term measurements that help predict and correct a process prior to its conclusion

Simple to read and understand The Sajzel Group, Inc.

Marketing vs. Production Create a marketing and sales

driven organization

ObstaclesProduction: more importantly our ability

to execute without drama

The Sajzel Group, Inc.

Drama Occurs from emotions, subjectivity, lack of

accountability Subjectivity with respect to company, employees

customers and clients Creates self preservation, fear and

embarrassment Leads too

Focusing on the wrong thing Putting the wrong people on the bus Putting the right people in the wrong seats on the bus

Result: wasting our most prized asset, OPTThe Sajzel Group, Inc.

Execute without drama Production not important

Wrong, wrong, wrong…it just needs to function effectively in the background.

Heart = Production

Brain = Marketing

Body = Sales ExecutionThe Sajzel Group, Inc.

Reduce drama Make it about the processes and not the

people Scoring subjective areas to make them more

objective Gather the right data Right questions = right measurements at the

right time Communicate the measurements of success Keep it simple

The Sajzel Group, Inc.

Red-Yellow-Green Simple One of several dashboard methods Easily understood by everyone Remove numbers from the

accountability Quick focus on what is working or not

working Used by Fortune 500 companies who

have a lot of people much smarter then me.

The Sajzel Group, Inc.

Which tells a better story?

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTALJohn 75,000$ 78,000$ 48,000$ 95,000$ 105,000$ 120,000$ 119,000$ 126,000$ 118,000$ 124,000$ 135,000$ 120,000$ 1,263,000$ Sue 56,000$ 6,500$ 65,000$ 85,000$ 52,000$ 38,000$ 61,000$ 66,000$ 22,000$ 58,000$ 49,000$ 61,000$ 619,500$ Rick 120,000$ 135,000$ 124,000$ 105,000$ 128,000$ 96,000$ 100,000$ 86,000$ 74,000$ 78,000$ 89,000$ 105,000$ 1,240,000$

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTALJohnSueRick

Team sales numbers

The Sajzel Group, Inc.

• Across The Top• Weekly• Monthly• Quarterly• Yearly• 52 Week Rolling

Average

• Down the side• Leads• % of leads sold• Margin pool

dollars• Cash (excluding

line)• Client status

totals i.e. B+, A, A+

• $/days from start to collect

• Customer service

The Sajzel Group, Inc.

Predictor KPI Measurements

Opportunities Relationship building Production

efficiencies Project status

movement Cash flow Receivable turns Margin Pool Marketing

efficiencies

Equipment usage Customer Service Mileage/Drive time Non-productive

labor Client Service Defects/

deficiencies Training Employee FunctionThe Sajzel Group, Inc.

Creating KPI’s1. Begin with the right questions2. Create numbers for everything

Turn subjective processes into objective measurements

3. Keep the visual reporting simple Red-Yellow-Green

4. Keep it highly visible for all to see5. Measure weekly, monthly, quarterly,

yearlyThe Sajzel Group, Inc.

Creating KPI’s6. Focus on the problems and systems

and not the people7. It is what it is at the start. Use it as a

baseline and move on8. Use the information as a

communication tool 9. Less is more. 10.Get buy-in in the process

The Sajzel Group, Inc.

Lessons What got measured got done Well understood and simple measurements had

the most impact Don’t broadcast number Fewer KPI’s are easier to drive Everyone in the company needs to see these

regularly Your most valuable asset in the growth and

sustainability of the business is OPT, not your own

The Sajzel Group, Inc.

Lessons The right KPI’s drive performance,

accountability, profits and ultimately the shine on the apple.

Dashboards allow you to attack the problem and not the people.

Removing subjectivity removes drama allowing the company to execute by reinforcing goals, communications and success based criteria.

The Sajzel Group, Inc.

Thank you for your attention

The Sajzel Group, Inc.