Staffing Metrics That Drive Business

Developing Metrics That Drive Growth and ProfitabilityPresenter: Mike Cleland

Presented by

Bond International Software, Inc.The worldwide leader in staffing and recruiting software.

Operational Excellence presented by Bond International Software, Inc.

Introduction:

The importance of a balanced metrics portfolio to ensure

• Effective prospecting and sales management• A well aligned delivery organization• Effective performance metrics• Improvements are taking hold and are

effective

• Presenter– Mike Cleland– Charted Path

ModeratorPhil McCutchenMarketing ManagerBond International Software, Inc.

PresenterMike ClelandPresidentCharted Path


Agenda

• The Model for Performance

• The Role of Metrics

• Overview of Financial Objectives

• Operational Performance Metrics

• Individual Performance Metrics

• Linking Metrics to your Company Strategy

Staffing’s Strategic Drivers

Bond International Software, Inc.

One world. One future.

www.bond-us.com

800-318-4983


Model for Performance

Performance Driven Culture

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Financial Results


When are Metrics Important?

• Growth decreases visibility

• Improve management collaboration

• Drive large scale improvements


How do metrics provide value?

• Objectively measure results

• Provide accurate leading indicators

• Identify operational weaknesses

• Reveal investment opportunities

• Drive individual accountability

• Measure strategy effectiveness


Model of Performance

• Result Metrics

• Operational Metrics

• Performance MetricsPerformance Driven Culture

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Financial Results

Result Metrics Overview



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800-318-4983


Common Financial Objectives

Growth ObjectivesProfitability Objectives


Financial Objective Overview

Revenue

• Reflects bill rates and headcount

• Not a measurement financial health

• Not a strong measurement of performance

• “Show Pony” measurement


Financial Objectives Overview

Gross Profit Dollars

• Strongest measure of growth

• Plays a important role in compensation

• Commonly acts as a performance measurement



Gross Profit %

• Strong macro measure of financial health

• Impacts company valuation

• Must be managed to selectively



Return on Investment

• Used as a company-wide and individual performance measure

• Revenue can be used but GM may act as a more revealing measure.

• Very powerful measure when comparing different parts of the organization


Driving Financial Results

• Measuring Operations

• Measuring Individual Performance

An organization must measure and manage to both since one can overshadow the other


The Role of Operational Metrics

Measures how well the operations are aligned with market needs and intended strategy

– Effectiveness of sales organization

– Client productivity

– Effectiveness of delivery processes and tools

– Team size and resource allocation

Measuring OperationsThe Sales Strategy



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Measuring the Sales Organization

• Value Proposition• Client Productivity• Sales Funnel


Value Proposition

Aside from relationships, it captures the value you bring to the market. It is why clients buy from you:

– Expertise

– Delivery Capabilities

– Service Level


Why measure your value prop?

• Determines effectiveness of value proposition

• Provides compelling data for your sales team and marketing material.

• Allows management to objectively challenge the go to market strategy.


Sample VP Metrics

Value Proposition Sample Metrics

Niche Specialization

•Industry Vertical

•Skill Set

Meetings within niche

# of Jobs Filled

% of Total Jobs

% of Fall Offs

Engagement Model- High Touch # Meetings with Hiring Manager

Job Order Fill Rate

Submittal to Hire Ratio

# of Jobs that meet criteria

Engagement Model- VMS # of RFPs Pending

# Events attended

% of Meeting Objectives Met


Measuring Client Productivity

These measures capture both the volume of Gross Margin a client provides along with the effort necessary to generate that gross margin.


Why Measure Client Productivity?

Measuring the productivity is an important step in eliminating waste and increasing profitability

– More than just GM%

– Productivity can vary widely

– Operational throughput necessary to generate margin.

– Measures true bottom line contribution


Sample Client Productivity Metrics

Measure Category Sample Metrics

Operational Job Orders per Month

Job Order Fill Rate

Submittal to Hire Ratio

Submittal to Interview Ratio

Financial Average Length of Contract

Average GM/hr

Total GM per placement

Average GM %

Client Profitability**


The Sales Funnel

•Do you have the right number of resources and are they generating the right activity?

•Sales must be measured in terms of front end activity.


Prospecting Volume: Example

Do you know what your funnel should look like?

Movement from a sales driven to a delivery driven company


Prospecting Volume: Impact

Areas of impact

• Cold calling

• New manager meetings

• Client penetration

• Client consolidation

• Long term performance

Poor performance in these areas indicate an aging book of business


Sample metrics for team size


Sales # of active target accounts

# of new client meetings

# of job orders from new clients

# of non VMS jobs

Increasing team size may be the solution to meet the required

activity levels. However, increasing quality requires greater focus

on the role of management. Different approaches may be needed

to develop skills, and actively manage to higher quality standards.

Measuring OperationsDelivery



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Why measure delivery?

•Buyers continuously change how they buy

•Delivery capabilities must support success factors

•Changing factors requires adaptation

•Metrics point to where change should occur


Measuring Delivery

How well does your delivery organization meet your clients needs?

–Quality

–Responsiveness

–Throughput


Quality

Does our company drive quality service?

• Job order qualification

• Candidate qualification

• Submittal management


Responsiveness

Is our delivery organization fast enough to compete?

– Delays

– Over Processing

– Over Production


Throughput

Do we have enough horsepower to service our target accounts?

– Sourcing

– Submittal Management


Sample Delivery Metrics


Response Time Average time to post

Average time to screen web apps

% of Jobs with submit within 8 hours

% of jobs covered within 48 hours

Quality % of High Touch Jobs

Submittal to Interview

Interview to Hire

Submittal to Hire

Turndowns/False Starts

Response time represents the amount of time it takes for a process

to be completed. In the world of VMS responsiveness oftentimes is

more important than quality.


Throughput Metrics


Recruiting # of jobs with no submittal

% of jobs with submittal within 8 hours

# of unique candidates submitted

Submittal to Interview Ratio

Performance Metrics



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Performance Metrics

• Performance metrics are measure of individual productivity

• Reviewed on a regular basis

• Should be customized based on the role, mix of business, and experience level


Why Measure Performance?

• Sets performance expectations

• Identifies weaknesses of desk activity

• Provides opportunity for one on one coaching

• Establishes history of performance


Sales Performance Metrics


Activity # of contacts made

# of meetings

Meetings with managers

# Job Orders

# Interviews

Quality # of direct jobs

# of jobs with interview times

Submittal to Interview

Submittal to Hire

# of Hires

Incorporating account plan objectives along with metrics is an excellent

way to elevate the conversation with your sales people and provide a

forum to brainstorm through obstacles. Reviews can be as much about

coaching as they are about accountability.


Recruiting Performance Metrics


Activity # of contacts

# of submittals per month

% of jobs covered

Candidates in pipeline

Quality # Interviews

# Placements

Submittal/Interview

Interview/Hire

Submittal/Hire


Tips for Performance Reviews

• Craft metrics based on your strategy and culture

• Be consistent

• Be prepared

• Communicate goals and objectives

Metrics and Strategic Change



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800-318-4983


Drivers of Strategic Change

• Change in sales strategy

• Operational overhaul

• Expanding the core business


Delivery overhaul

• Reorganization

• Process overhaul

– Job Order Management

– Sourcing

– Submittal Management


Change in Sales Strategy

• Target different account base

• Modify existing offerings

• Reengineer the sales process


Expanding from the Core

Many staffing company’s are evaluating their strategy in order to stay competitive.


Why Measure Your Strategy?

• Metrics quantify the change

• Metrics help determine if its feasible

• Metrics provide data for effective change management

• Metrics hold all levels of the organization accountable


Strategy Focused Organization

Result Objectives• Financial: The ultimate results of the

strategy• Customer: The value the customer receives

Driver Objectives• Process: The activities that create the value• Learning and Growth: How people, technology

and organizational structure support the strategy


Tools for Management

• Strategy Map captures and aligns

– Sales Strategy

– Operational Success Factors

– Performance Culture

• Balance Scorecard measures the progress of the strategy


Sample Strategy Map


Sample Balanced Scorecard


Wrap Up

• Choose a targeted and well balance portfolio of metrics– Results

– Operations

– Performance Drivers

– Strategy

• The portfolio of metrics should vary based on– Company Strategy

– Team Composition

– Company Size

– Client Base

Question & AnswerThank you for joining us!

Mike [email protected]

Need staffing and recruiting software to measure KPI’s and manage your operations by the numbers? Call us!



www.bond-us.com

800-318-4983

Staffing Metrics That Drive Business

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