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.

1. KPI workshop
@StephenLynch @RESULTSdotcom

2. Key Performance Indicators

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

18. Confront poor performance

22. “What are the reasons for this trend Craig?”

24. Assign a Task to address the issue

32. The Progress Principle

33. Celebrate “Small Wins” every step of the way

36. Praise Frequently

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

39. Single point
accountability

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

58. “SMART” Goals
S
Specific
M
Measurable
A
Achievable
R
Relevant
T
Time bound

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: