Kpi´s Workshop

KPI Workshop

PRESENTER: Stephen Lynch @StephenLynch #RealKPIs || @RESULTSdotcom

#RealKPIs

JOIN THE CONVERSATION ONLINE

PRESENTATION AVAILABLE POST PRESENTATION:

www.RESULTS.com/slides

Questions / Answers:#realKPIs || @RESULTSdotcom

Full participation


Ask for everyones point of view


Productive conflict is important


No group think


Make a clear decision


Everyone commits to the decision


Key Performance Indicators


However beautiful the strategy, you should occasionally look at the results


92% of companies dont measure KPIs [3]


RED = Unacceptable performance standard

YELLOW = Watch closely. Need help?

GREEN = Target performance standard

Key Performance Indicators / Key Metrics


In the past, we used Spreadsheets / MS Excel


IDENTIFY WHATS 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 WHOS EXCELLING AND WHO NEEDS HELP

Now we use Software


Everyone knows their own individual accountabilities


Key Performance Indicators / Key Metrics


They can also see how other teams are performing


Team leaders can drill down to identify the cause


Looks like one person is struggling?


What is happening here? How can we help?


Assign a Task to address the issue


The Right Way To Set Goals


Always aim for the STARS, if you miss

..youll at least reach the moon


Tropical Island Test


- 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 is performing- If the KPIs are green you can go back to reading your book - If the KPIs are yellow you need to ring the office to see what is going on- If the KPIs are red you need to cut your holiday short and return home

- What would those numbers be?

Imagine this


Business Model / Industry KPIs (example)

Industry Type = (e.g. Restaurant) Performance Thresholds

KPI DescriptionPerson

AccountableMeasurement

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%


Business Model / Industry KPIs (example)

Industry Type = Performance Thresholds

KPI Description Person Accountable

MeasurementFrequency RED YELLOW GREEN


The 4 Gears


Create leads

Convert leads into sales

Provide product / service that delights customers

Grow cash & make a profit

KPIs - The 4 Gears


Outcome

Activity Effectiveness

Outcomes are good, but what drives them?


Outcome


$ Sales

# phone calls# appointments booked # sales presentations

% who attend presentation% who buy at presentation


Scope out your KPIs (example)

Team / Functional Area name = (e.g. Sales Team ) Performance Thresholds




# 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


KPI Hierarchies (roll ups) (example)


Parent Goal KPI Description Person AccountableMeasurement


# Sales presentations total team Tyler Weekly 55 75

Child Goals Person AccountableMeasurement

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



Single Point Accountability

Data you can track and measure right now?

Contributes to the big picture?

Drives the right behaviors?


The sniff test: