Archive for February, 2011

Measurements, Goals & KPIs – something to aim for

Article 50! Is that worth recognising?

A while back I was meeting with the team of about 20 from an industrial company and I asked them how they knew when they were doing a good job? They replied, “When the boss is not kicking us in the arse!” Thankfully that ‘boss’ has grown and the team now has some more measureable performance benchmarks in place.

This month’s article is the 50th since the Bunbury Chamber first asked me to contribute a little over 4 years ago. Although unlikely to make it onto the list of gazetted national holidays, I felt it was worth acknowledging.

We often overlook these small milestones due to a lack of measurement. For example, had I not numbered each article in my records, this mini milestone would have come and gone with no recognition at all.

‘If you can measure it, you can improve it’. Further to that, ‘if you do measure it, you’ll know when you have achieved it’ And there are a multitude of ways that you can set simple measurements (Key Performance Indicators) for any area of business. Here are a few examples

  • Sales departments –Revenue and GP % targets
  • Customer Service People – Customer Satisfaction benchmarks (results gleaned from a concise survey)
  • Manufacturers  – Lost time to injury (LTI) or rework benchmarks
  • Specialists who bill by the hour – Billable hours (productivity) and efficiency benchmarks
  • Manual labourers –  Punctuality or peer satisfaction benchmarks

And when you are setting KPIs/benchmarks be sure they meet these 3 criterion

  1. They are relatively easy to measure
  2. Those aiming for the goal have a strong influence on reaching it (i.e. it’s not out of their control)
  3. The attainment of the goal benefits business, team and ideally, the customer

Why do they have ‘goals’ in sport? Without them, you’d have nothing to aim for.

Yours in prosperity and fun

Jeff Austin

Actual to Ideal –

Close the Gap

Bunbury Business Coach

Jeff Austin - Business Coach Bunbury