Goal Setting for RESULTS - Lessons learned from working with thousands of SMB clients Stephen Lynch is the Head of Strategy and Consulting at RESULTS.com. He is a “Kiwi” (New Zealander) living in San Francisco. RESULTS.com’s software gives them unique and privileged insights into the day to day operations of thousands of small-medium sized growth firms. We see what really works and what doesn’t in terms of strategy execution, goal setting, tracking performance, running effective meetings, engaging employees and holding them accountable. To save you from spending several lifetimes trying to figure it all out for yourself, you can access these powerful (and often counter intuitive) insights in this presentation.

1. Goal Setting for RESULTS
Best practices based on the direct observations
of thousands of RESULTS.com client firms
Presenter: Stephen Lynch
Role: Head of Strategy & Consulting at RESULTS.com
Email: Stephen.Lynch@Results.com
Linkedin: linkedin.com/in/stephengeoffreylynch
Slides: results.com/slides
Software Demo: results.com/insurance

3. “However beautiful the strategy,
you should occasionally
look at the results”
“However beautiful the strategy,
you should occasionally
look at the results”

7. RED = Unacceptable performance standard
YELLOW = Watch closely. Problem?
GREEN = Target performance standard
Questions / Answers:
#realKPIs || @RESULTSdotcom
Tracking Metrics / Key Performance Indicators

8. RED = Project off track. Will miss deadline
YELLOW = Project needs help. Problem?
GREEN = Project on track
Questions / Answers:
#realKPIs || @RESULTSdotcom
Tracking Strategic Projects

9. In the past, we used Spreadsheets

10. Now we use software

12. Everyone knows their individual accountabilities

13. We can see how other teams are performing

14. Drive the execution of Projects & Tasks

15. We can see how other teams are performing

16. We can see who is, and who is NOT performing

17. What’s happening here?

20. “92% of companies don’t measure KPIs”

21. 92% of companies don’t measure KPIs [3]

24. Create
leads
Convert leads
into sales
Provide
product-service
Delight
customers
Grow cash
make profit

25. Questions to identify your KPIs
1. What are the key functional areas of my business?
2. What result or outcome am I looking for in each area?
3. What “activities” or “actions” drive this outcome?
4. What “effectiveness” measures let me know how well
these activities are being performed?

29. # phone conversations
# appointments booked
# proposals submitted
# policies issued
% appointments conducted
% submissions approved
$ average API

32. Aim for the stars,
even if you miss…
you’ll still reach the moon

41. Questions / Answers:
#realKPIs || @RESULTSdotcom

42. Create
leads
Convert leads
into sales
Provide
product-service
Delight
customers
Grow cash
make profit

43. KPI Questions
What result or outcome are you looking for?
What “activities” or “actions” drive this outcome?
What “effectiveness” measures let you know how well these
activities are being performed?

44. Functional Area
Team / Functional Area name = MARKETING (Create Leads) Performance Thresholds
KPI Description
Person
Accountable
Measurement
Frequency RED GREEN

45. Functional Area
Team / Functional Area name = MARKETING (Create Leads) Performance Thresholds
KPI Description
Person
Accountable
Measurement
Frequency RED GREEN
New Customer Phone Conversations Week 8 12
New Customer Appointments Booked Week 3 6
Influencer Meetings Week 0 1

46. Questions / Answers:
#realKPIs || @RESULTSdotcom
Single Point Accountability

47. Functional Area
Team / Functional Area name = SALES (Convert Leads to Clients) Performance Thresholds
KPI Description
Person
Accountable
Measurement
Frequency RED GREEN

48. Functional Area
Team / Functional Area name = SALES (Convert Leads to Clients) Performance Thresholds
KPI Description
Person
Accountable
Measurement
Frequency RED GREEN
New Customer Appointments Held Week 1 4
Submissions Week 1 3
Appt / Submission Conversion MTD Week 70% 80%
Issued Policies Week 0 2
Average API per policy Week $1200 $1500

49. Functional Area
Team / Functional Area name = OPERATIONS (Provide Service) Performance Thresholds
KPI Description
Person
Accountable
Measurement
Frequency RED GREEN

50. Functional Area
Team / Functional Area name = OPERATIONS (Provide Service) Performance Thresholds
KPI Description
Person
Accountable
Measurement
Frequency RED GREEN
Existing customer phone conversations Week 10 15
Existing customer appointments Week 0 2
Lapsed Policies MTD Week 3 1
Referrals MTD Week 2 4

51. Functional Area
Team / Functional Area name = FINANCE (Grow Cash + Profits) Performance Thresholds
KPI Description
Person
Accountable
Measurement
Frequency RED GREEN

52. Functional Area
Team / Functional Area name = FINANCE (Grow Cash + Profits) Performance Thresholds
KPI Description
Person
Accountable
Measurement
Frequency RED GREEN
Daily Cash balance Day $ $
Revenue MTD Day $ $
Monthly Net Profit % Month % %

53. - You are on an extended holiday in the tropics….
- All you can receive is a weekly email that contains a small handful of
numbers (5 max) that tell you how well your business is performing
- If the KPI’s are “green” you can go back to reading your book
- 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 are the “critical success factors” for your business?
Imagine this…

54. Business Model - Critical Success Factors
(example)
Industry Type = (e.g. Insurance Advisor) Performance Thresholds
KPI Description
Person
Accountable
Measurement
Frequency RED GREEN
New Client Appointments Week 1 4
Submissions Week 1 3
Appt / Submission conversion rate MTD Week 70% 80%
Issued Policies Week 0 2
Average Annual Premium Income per policy Week $1200 $1500

56. Questions / Answers:
#realKPIs || @RESULTSdotcom

58. In “The Red”?
What’s happening here?
What 1 thing can we do this week to
improve this?
What support do you need?

60. Accountability is meaningless without consequences
What positive consequences can a person expect
if their KPI is consistently in the “GREEN”?
What negative consequences can a person expect
if their KPI is consistently in the “RED”:
• For 1 month?
• For 2 months in a row?
• For 3 months in a row?

61. “Leaders owe it to the organization & their fellow workers
not to tolerate non-performing people in important jobs”

62. KPI performance thresholds
Be conservative in the beginning
Get everyone used to “winning”
You can always raise the bar later

63. Goal Setting & Accountability – Getting it Right
Growth inhibited by:
- Wrong person in the role
- Wrong Metrics / KPIs
- Too many Goals
- Unrealistic performance thresholds
- Not keeping Goals and Tasks current and visible every week
- Not running weekly team and 1-on-1 meetings to discuss results
- Not holding each person firmly accountable for performance
- No consequences for poor performance
- Waiting too long to address poor performance
Growth maximized by:
- Right person in the role
- Right Metrics / KPIs
- Realistic “green” performance thresholds – adjusted regularly
- Goals and Tasks kept current and visible every week
- Weekly team and 1-on-1 meetings to discuss results
- Each person held firmly accountable for performance
- Good performance and progress praised and recognized
- Poor performance discussed every week and addressed promptly

64. ★ KPIs drive “business as usual” (your current operating model)
★ Don’t just track outcomes or currency measures
★ Focus on activity & effectiveness measures that drive outcomes
★ Make performance visible on a dashboard
★ Weekly team and 1 on 1 meetings to discuss performance
★ Good performance praise and recognize
★ Poor performance discuss every week, “What’s happening here?”
★ Shame is not a motivator. Beware setting thresholds too high
★ Be conservative in beginning. Get everyone used to winning
★ Ratchet up performance threshold over time
★ Adjust thresholds every quarter to ensure relevance
Metrics / KPIs - best practices

66. 10 Benefits of Software Dashboards
1. Radical Transparency - motivates action
2. Everyone can see what’s going on
3. Keeps people focused on critical success factors
4. Communicates “what” needs to be done
5. Delegate authority to staff to figure out “how”
6. Recognize progress when things going well
7. Early warning indicator when things going wrong
8. More effective meetings to drive accountability
9. Objective decision making based on data
10. Drives business execution and RESULTS

67. Thank you for your time!

68. Goal Setting for RESULTS
Best practices based on the direct observations
of thousands of RESULTS.com client firms
Presenter: Stephen Lynch
Role: Head of Strategy & Consulting at RESULTS.com
Email: Stephen.Lynch@Results.com
Linkedin: linkedin.com/in/stephengeoffreylynch
Slides: results.com/slides
Software Demo: results.com/insurance