KPI Workshop
PRESENTER:
Stephen Lynch @StephenLynch
#RealKPIs || @RESULTSdotcom
JOIN THE CONVERSATION ONLINE
#RealKPIs
PRESENTATION AVAILABLE POST PRESENTATION:
www.RESULTS.com/slides
Questions / Answers:
#realKPIs || @RESULTSdotcom
Full participation
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Ask for everyones point of view
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Productive conflict is important
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No group think
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Make a clear decision
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Everyone commits to the decision
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Key Performance Indicators
Questions / Answers:
#realKPIs || @RESULTSdotcom
beautiful the strategy, you
However
should occasionally look at the results
Questions / Answers:
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92% of companies dont measure KPIs
[3]
Questions / Answers:
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Key Performance Indicators / Key Metrics
RED = Unacceptable performance standard
YELLOW = Watch closely. Need help?
GREEN = Target performance standard
Questions / Answers:
#realKPIs || @RESULTSdotcom
In the past, we used Spreadsheets / MS Excel
Questions / Answers:
#realKPIs || @RESULTSdotcom
Now we use Software
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
Questions / Answers:
#realKPIs || @RESULTSdotcom
Everyone knows their own individual accountabilities
Questions / Answers:
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Key Performance Indicators / Key Metrics
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They can also see how other teams are performing
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They can also see how other teams are performing
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Team leaders can drill down to identify the cause
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Looks like one person is struggling?
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What is happening here? How can we help?
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#realKPIs || @RESULTSdotcom
Assign a Task to address the issue
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#realKPIs || @RESULTSdotcom
The Right Way To Set Goals
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#realKPIs || @RESULTSdotcom
Always aim for the STARS,
if you miss
..youll at least
reach the moon
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#realKPIs || @RESULTSdotcom
Tropical Island Test
Questions / Answers:
#realKPIs || @RESULTSdotcom
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 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?
Questions / Answers:
#realKPIs || @RESULTSdotcom
Business Model / Industry KPIs
Industry Type = (e.g. Restaurant)
(example)
Performance Thresholds
Person
Accountable
Measurement
Frequency
RED
# Customers
Chloe
Weekly
2700
3000
$ Average spend per customer
Rajesh
Weekly
$35
$40
# Complaints
Rajesh
Weekly
10
$ Revenue per available seat hour (RevPASH)
Mark
Weekly
$12
$15
Labor cost as % of revenue
Mark
Weekly
35%
30%
KPI Description
YELLOW
GREEN
Questions / Answers:
#realKPIs || @RESULTSdotcom
Business Model / Industry KPIs
Industry Type =
KPI Description
(example)
Performance Thresholds
Person
Accountable
Measurement
Frequency
RED
YELLOW
GREEN
Questions / Answers:
#realKPIs || @RESULTSdotcom
The 4 Gears
KPIs - The 4 Gears
Create leads
Convert leads into sales
Provide product / service
that delights customers
Grow cash
& make a profit
Questions / Answers:
#realKPIs || @RESULTSdotcom
Outcomes are good, but what drives them?
Outcome
Activity
Effectiveness
Questions / Answers:
#realKPIs || @RESULTSdotcom
Convert leads into sales
Outcome
Activity
# phone calls
# appointments booked
# sales presentations
$ Sales
Effectiveness
% who attend
presentation
% who buy at presentation
Questions / Answers:
#realKPIs || @RESULTSdotcom
Scope out your KPIs
(example)
Team / Functional Area name = (e.g. Sales Team )
Performance Thresholds
Person
Accountable
Measurement
Frequency
RED
# 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 Description
YELLOW
GREEN
Questions / Answers:
#realKPIs || @RESULTSdotcom
KPI Hierarchies (roll ups)
Team / Functional Area name = (e.g. Sales Team )
(example)
Performance Thresholds
Person
Accountable
Measurement
Frequency
RED
Tyler
Weekly
55
75
Person
Accountable
Measurement
Frequency
Jeff
Weekly
15
20
# Sales presentations - Marie
Marie
Weekly
15
20
# Sales presentations - Sergey
Sergey
Weekly
15
20
Arzu
Weekly
10
15
Parent Goal KPI Description
# Sales presentations total team
Child Goals
# Sales presentations - Jeff
# Sales presentations - Arzu
YELLOW
GREEN
Questions / Answers:
#realKPIs || @RESULTSdotcom
Single Point Accountability
Questions / Answers:
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The sniff test:
Data you can track and measure right now?
Contributes to the big picture?
Drives the right behaviors?
Questions / Answers:
#realKPIs || @RESULTSdotcom
Questions / Answers:
#realKPIs || @RESULTSdotcom
KPIs - The 4 Gears
Create leads
Convert leads into sales
Provide product / service
that delights customers
Grow cash
& make a profit
Questions / Answers:
#realKPIs || @RESULTSdotcom
Team / Functional Area KPIs
Team / Functional Area name =
KPI Description
Performance Thresholds
Person
Accountable
Measurement
Frequency
RED
YELLOW
GREEN
Questions / Answers:
#realKPIs || @RESULTSdotcom
KPI Hierarchies
Team / Functional Area =
Performance Thresholds
Parent Goal KPI Description
Person
Accountable
Measurement
Frequency
Child Goals
Person
Accountable
Measurement
Frequency
RED
YELLOW
GREEN
Questions / Answers:
#realKPIs || @RESULTSdotcom
KPIs - The 4 Gears
Create leads
Convert leads into sales
Provide product / service
that delights customers
Grow cash
& make a profit
Questions / Answers:
#realKPIs || @RESULTSdotcom
Create leads
Outcome
Activity
Effectiveness
Questions / Answers:
#realKPIs || @RESULTSdotcom
Team / Functional Area KPIs
Team / Functional Area name = MARKETING
KPI Description
Performance Thresholds
Person
Accountable
Measurement
Frequency
RED
YELLOW
GREEN
Questions / Answers:
#realKPIs || @RESULTSdotcom
KPIs - The 4 Gears
Create leads
Convert leads into sales
Provide product / service
that delights customers
Grow cash
& make a profit
Questions / Answers:
#realKPIs || @RESULTSdotcom
Convert leads into sales
Outcome
Activity
Effectiveness
Questions / Answers:
#realKPIs || @RESULTSdotcom
Team / Functional Area KPIs
Team / Functional Area name = SALES
KPI Description
Performance Thresholds
Person
Accountable
Measurement
Frequency
RED
YELLOW
GREEN
Questions / Answers:
#realKPIs || @RESULTSdotcom
Scope out your KPIs
(example)
Team / Functional Area name = (e.g. Sales Team )
Performance Thresholds
Person
Accountable
Measurement
Frequency
RED
# 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 Description
YELLOW
GREEN
Questions / Answers:
#realKPIs || @RESULTSdotcom
KPI Hierarchies (roll ups)
Team / Functional Area name = (e.g. Sales Team )
(example)
Performance Thresholds
Person
Accountable
Measurement
Frequency
RED
Tyler
Weekly
55
75
Person
Accountable
Measurement
Frequency
Jeff
Weekly
15
20
# Sales presentations - Marie
Marie
Weekly
15
20
# Sales presentations - Sergey
Sergey
Weekly
15
20
Arzu
Weekly
10
15
Parent Goal KPI Description
# Sales presentations total team
Child Goals
# Sales presentations - Jeff
# Sales presentations - Arzu
YELLOW
GREEN
Questions / Answers:
#realKPIs || @RESULTSdotcom
KPIs - The 4 Gears
Create leads
Convert leads into sales
Provide product / service
that delights customers
Grow cash
& make a profit
Questions / Answers:
#realKPIs || @RESULTSdotcom
Provide product / service > delight customers
Outcome
Activity
Effectiveness
Questions / Answers:
#realKPIs || @RESULTSdotcom
Team / Functional Area KPIs
Team / Functional Area name = OPERATIONS
KPI Description
Performance Thresholds
Person
Accountable
Measurement
Frequency
RED
YELLOW
GREEN
Questions / Answers:
#realKPIs || @RESULTSdotcom
KPIs - The 4 Gears
Create leads
Convert leads into sales
Provide product / service
that delights customers
Grow cash
& make a profit
Questions / Answers:
#realKPIs || @RESULTSdotcom
Grow cash & make profit
Outcome
Activity
Effectiveness
Questions / Answers:
#realKPIs || @RESULTSdotcom
Team / Functional Area KPIs
Team / Functional Area name = FINANCE
KPI Description
Performance Thresholds
Person
Accountable
Measurement
Frequency
RED
YELLOW
GREEN
Questions / Answers:
#realKPIs || @RESULTSdotcom
Individual KPIs
Questions / Answers:
#realKPIs || @RESULTSdotcom
Questions / Answers:
#realKPIs || @RESULTSdotcom
Questions / Answers:
#realKPIs || @RESULTSdotcom
SMART Goals
Specific
Measurable
Achievable
Relevant
Time bound
Questions / Answers:
#realKPIs || @RESULTSdotcom
Whats your number?
Ideally everyone has a KPI
Contributes to big picture
I had a good week
Questions / Answers:
#realKPIs || @RESULTSdotcom
Individual KPIs
What is each persons daily / weekly number?
KPI Description
Performance Thresholds
Person
Accountable
Measurement
Frequency
RED
YELLOW
GREEN
Questions / Answers:
#realKPIs || @RESULTSdotcom
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
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
Questions / Answers:
#realKPIs || @RESULTSdotcom
#1 Regret of Business Leaders
They wish they had dealt with poor performance sooner!
Questions / Answers:
#realKPIs || @RESULTSdotcom
He that is good for making
excuses is seldom good for
anything else.
Leaders owe it to the organization
& their fellow workers, not to tolerate
non-performing people in important jobs
Peter Drucker
Benjamin Franklin
Questions / Answers:
#realKPIs || @RESULTSdotcom
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
Review your performance thresholds
Be conservative in the beginning
Get everyone used to winning
You can always raise the bar later
Questions / Answers:
#realKPIs || @RESULTSdotcom
KPIs getting it right
Growth maximized by:
- Right person in the role
- Right KPIs
- Realistic green performance thresholds adjusted regularly
- KPI data kept current and visible every week
- Person held firmly accountable for performance
- Progress praised and recognized
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
A COMPLETE SOLUTION FOR SMB
RESULTS focused management dashboard
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
JOIN THE CONVERSATION ONLINE
#RealKPIs
PRESENTATION AVAILABLE POST PRESENTATION:
www.RESULTS.com/slides
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 RESULTS focused management dashboard
IS A
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