Is your company tracking the right indicators to drive your optimal performance?
At The Alpha Group we make certain that you decide your 10 Key Performance Activities (KPAs) and Key Performance Indicators (KPIs) that will keep your business performance on track to achieve growth.
So, how does this happen?
Easy, its a six step-process using the power of the peer-to-peer advisory board.
Firstly the peer-to-peer advisory board help you identify what is your strategic problem.
As Business Leaders some of us just don’t have the right information and controls we need to make informed, timely decisions. As a result, either our company performance is badly affected by business problems we hadn’t spotted, or we miss out on golden opportunities for business growth.
Secondly the peer-to-peer advisory board help you identify your five critical, strategic KPIs.
Your Strategic Priorities for the next 12 month
Your Strategic KPIs s i.e. how you will monitor your progress
Thirdly the peer-to-peer advisory board help you identify your five critical, financial & operational KPIs
Listed below are some financial and operational KPIs that help you keep your business performance and growth on track. Add to the list below and then identify with an asterisk those 5 which are critical for your business. Then write each of your critical, operational and financial KPIs on a post-it.
1 Your Sales
a. Live quotes
b. Quote conversion rates
c. Order book
d. Invoiced sales
e. Order back log
f. Number of customer/clients
g. % repeat business
h. Number of referrals
2 Your Profitability a. % gross profit b. Actual gross profit c. % net profit d. Actual net profit e. Breakeven sales f. Sales per employee g. Profit per product/service h.
3 ** Your Cash & Working Capital**
a. Cash position now
b. Cash forecast 1 month’s time
c. Overdue sales invoices
d. Debtor days
e. Creditor days
f. Stock turnover
4 Your Quality & Delivery
a. Customer complaints
b. Delivery performance
c. Credit notes
d. Stock availability
5 Your Staff Performance
a. Staff leavers
c. Non-chargeable hours
d. Some measurement of staff morale
Fourthly the peer-to-peer advisory board help you group your 10 KPIs.
Take your 5 strategic KPIs and your 5 financial & operational KPIs and group you into those which are past, present and future performance focused. On the table below, position your post-its of those KPIs you want to be increasing and those you want to be decreasing.
Lastly the peer-to-peer advisory board help you refine your KPIs,engage your team and take the next critical action.
The profound impact on you and your company of keeping your growth on track through effective indicators is that within 12 months, through the execution of your Key Performance Activities you will substantially increase your profits.
If you would like to find out more about how The Alpha Group members keep growth on track through effective indicators then please get in touch and I will be happy to send you further information about visiting a suitable group, online, face-to-face or blended with a mixture of real world and virtual board meetings.