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KPI Workshop

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RESULTS.com
RESULTS.com

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 AND help you achieve your business goals.

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KPI workshop @StephenLynch @RESULTSdotcom
Key Performance Indicators
“However beautiful the strategy, you should occasionally look at the results”
92% of companies don’t measure KPIs [3]
KPI Workshop
KPI Workshop
KPI Workshop
Key Performance Indicators / Key Metrics  RED = Unacceptable performance standard  YELLOW = Watch closely. Need help?  GREEN = Target performance standard
In the past, we used Spreadsheets / MS Excel
Now we use software
Key Performance Indicators / Key Metrics
Everyone knows their own individual accountabilities
They can also see how the entire team is performing
Team leaders can drill down to identify the cause
Looks like one person is holding the team back
What are the reasons for this trend?
Craig
Confront poor performance
KPI Workshop
KPI Workshop
KPI Workshop
“What are the reasons for this trend Craig?”
KPI Workshop
Assign a Task to address the issue
KPI Workshop
KPI Workshop
KPI Workshop
KPI Workshop
KPI Workshop
KPI Workshop
KPI Workshop
The Progress Principle
Celebrate “Small Wins” every step of the way
KPI Workshop
KPI Workshop
Praise Frequently
Industry / Business Model KPIs Teams / Functional Area KPIs Individual KPIs (What’s your daily / weekly number?)
Business Model / Industry KPIs (example) Industry Type = (e.g. Restaurant) Performance Thresholds Person Accountable Measurement Frequency RED # 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% KPI Description YELLOW GREEN
Single point accountability
Many can be involved, but only 1 person can be named accountable for each KPI
Industry / Business Model KPIs Teams / Functional Area KPIs Individual KPIs (What’s your daily / weekly number?)
Activity Effectiveness Outcome # Sales Presentations (activity) % of Prospects that purchase (effectiveness) $ Sales revenue (outcome)
KPI Workshop
Team / Functional Area KPIs (example) Team / Functional Area name = (e.g. Fitness Center 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
KPI Hierarchies (roll ups) (example) Team / Functional Area name = (e.g. Fitness Center Sales Team ) 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
KPI Workshop
Industry / Business Model KPIs Teams / Functional Area KPIs Individual KPIs (What’s your daily / weekly number?)
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?
Leadership Team: Industry / Business Model KPIs Industry Type = KPI Description Performance Thresholds Person Accountable Measurement Frequency RED YELLOW GREEN
Industry / Business Model KPIs Teams / Functional Area KPIs Individual KPIs (What’s your daily / weekly number?)
Team / Functional Area KPIs Team / Functional Area name = KPI Description Performance Thresholds Person Accountable Measurement Frequency RED YELLOW GREEN
KPI Hierarchies Team / Functional Area = Performance Thresholds “Parent” Goal KPI Description Person Accountable Measurement Frequency “Child” Goals Person Accountable Measurement Frequency RED YELLOW GREEN
KPI Workshop
Industry / Business Model KPIs Teams / Functional Area KPIs Individual KPIs (What’s your daily / weekly number?)
KPI Workshop
KPI Workshop
Individual KPIs What is each person’s daily / weekly number? KPI Description Person Accountable Performance Thresholds Measurement Frequency RED YELLOW GREEN
“SMART” Goals S Specific M Measurable A Achievable R Relevant T Time bound
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
KPI Workshop
#1 Regret of Business Leaders They wish they had dealt with poor performance sooner!
“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
“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?
KPIs – getting it right 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 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
KPI Workshop
KPI Workshop
Get the slide deck: www.RESULTS.com/slides Connect with Stephen Lynch:

More Related Content

KPI Workshop

  • 3. “However beautiful the strategy, you should occasionally look at the results”
  • 4. 92% of companies don’t measure KPIs [3]
  • 8. Key Performance Indicators / Key Metrics  RED = Unacceptable performance standard  YELLOW = Watch closely. Need help?  GREEN = Target performance standard
  • 9. In the past, we used Spreadsheets / MS Excel
  • 10. Now we use software
  • 11. Key Performance Indicators / Key Metrics
  • 12. Everyone knows their own individual accountabilities
  • 13. They can also see how the entire team is performing
  • 14. Team leaders can drill down to identify the cause
  • 15. Looks like one person is holding the team back
  • 16. What are the reasons for this trend?
  • 17. Craig
  • 22. “What are the reasons for this trend Craig?”
  • 24. Assign a Task to address the issue
  • 33. Celebrate “Small Wins” every step of the way
  • 37. Industry / Business Model KPIs Teams / Functional Area KPIs Individual KPIs (What’s your daily / weekly number?)
  • 38. Business Model / Industry KPIs (example) Industry Type = (e.g. Restaurant) Performance Thresholds Person Accountable Measurement Frequency RED # 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% KPI Description YELLOW GREEN
  • 40. Many can be involved, but only 1 person can be named accountable for each KPI
  • 41. Industry / Business Model KPIs Teams / Functional Area KPIs Individual KPIs (What’s your daily / weekly number?)
  • 42. Activity Effectiveness Outcome # Sales Presentations (activity) % of Prospects that purchase (effectiveness) $ Sales revenue (outcome)
  • 44. Team / Functional Area KPIs (example) Team / Functional Area name = (e.g. Fitness Center 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
  • 45. KPI Hierarchies (roll ups) (example) Team / Functional Area name = (e.g. Fitness Center Sales Team ) 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
  • 47. Industry / Business Model KPIs Teams / Functional Area KPIs Individual KPIs (What’s your daily / weekly number?)
  • 48. 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?
  • 49. Leadership Team: Industry / Business Model KPIs Industry Type = KPI Description Performance Thresholds Person Accountable Measurement Frequency RED YELLOW GREEN
  • 50. Industry / Business Model KPIs Teams / Functional Area KPIs Individual KPIs (What’s your daily / weekly number?)
  • 51. Team / Functional Area KPIs Team / Functional Area name = KPI Description Performance Thresholds Person Accountable Measurement Frequency RED YELLOW GREEN
  • 52. KPI Hierarchies Team / Functional Area = Performance Thresholds “Parent” Goal KPI Description Person Accountable Measurement Frequency “Child” Goals Person Accountable Measurement Frequency RED YELLOW GREEN
  • 54. Industry / Business Model KPIs Teams / Functional Area KPIs Individual KPIs (What’s your daily / weekly number?)
  • 57. Individual KPIs What is each person’s daily / weekly number? KPI Description Person Accountable Performance Thresholds Measurement Frequency RED YELLOW GREEN
  • 59. 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
  • 61. #1 Regret of Business Leaders They wish they had dealt with poor performance sooner!
  • 62. “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
  • 63. “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?
  • 64. KPIs – getting it right 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 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
  • 67. Get the slide deck: www.RESULTS.com/slides Connect with Stephen Lynch: