Friday, October 29, 2010

The Scoreboard

How would you like watching sports without a scoreboard? No score, no comparison; no one wins, no one loses.

Coaching is not just for sports; and neither is scorekeeping. Once you've established KPIs for your team, it's time to pull out a scoreboard and start watching the game. Get a big whiteboard and write everyone's KPIs on it (owners - you too). Put it somewhere that everyone can see it. Start marking actual performance versus targeted numbers on a daily basis, and watch the game come to life. When you see a discrepancy in the actual vs. targeted numbers, you know where you need to up your game. It's what we call "variance" - and it's the opportunity to modify an aspect of your business to achieve better performance.

When variance is present we need to find out why it's there. If someone is not meeting their targets, have a group huddle to strategize and adjust things accordingly. Keep that KPI up there until your variance is within acceptable levels or is eliminated. If the team is consistently meeting their targets, the KPIs should be re-evaluated. If your goals sit still, so will you and your business.

Have fun watching your business moving forward, but don't forget to let the team celebrate their wins! When someone achieves their KPIs and real growth happens, celebrate! You're winning the game!

Monday, October 18, 2010

Key Performance Indicators (KPIs)

A Key Performance Indicator (KPI) is exactly what it sounds like - a number that indicates the performance of an individual or an organization in a key task.

For an excellent look at KPIs in the real world, let's turn to the sports industry. How many times on television have you seen the photo of a professional player with a list of numbers next to them? Every minute detail of that player's performance is carefully tabulated, averaged, compared, and grossed into the team's overall performance; this performance is then carefully tabulated, averaged, compared and modified as the season goes on to determine playoff standing, probability of yearend final standing and the possibility of making history. Every one of those individual stats contributes to a larger number that translates into predictions, player swaps, and the future of teams as a whole.

Coaching is not just for sports - and neither are stats. Every player in a business is part of a team that is shooting for common goals, and their KPIs (personal stats) will translate into team stats; these, in turn, will help indicate how well a business is meeting its objectives.

If someone on your team is having a difficult time developing personal KPIs, have a sit-down with them. Talk about the top five things they do each day and the top five things they do that generate the most revenue for the business. A business runs on time and money, so developing KPIs based on these fundamental resources makes it easy to see the affect of individual's tasks on the business as a whole. Take three of those tasks and make them measurable. A salesman could develop a KPI based on number or dollar value of sales. A process worker could develop a KPI based on how long it takes them to accomplish their task. Once these tasks are identified and scaled, you have a list of trackable, measurable KPIs. (on a sidenote - this is important! Everyone is responsible for certain tasks, and therefore certain KPIs. No KPIs appear where there is no specific performing player! ie: every KPI should have a name attached to it.).

Develop KPIs this week - get a clear idea of how well you are performing. Start keeping stats, and stay tuned for the best ways to use your KPIs to get measurable/quantifiable results ...

Thursday, October 7, 2010

Thanksgiving is the season

While I live in Canada, I have many family members and friends in the United States. That means I spend several weeks talking about Thanksgiving, since these holidays occur in these countries one month apart. My family is currently gearing up for the great Thanksgiving weekend, while down south they are headed straight into Halloween hoopla. It's never a bad thing - there are so many things we should be grateful for, and the longer we give focus to what we already have, the better off we are to achieve goals.

It sounds ironic, I know. But try it out. Take a few minutes to write down at least five things you are truly, honestly thankful for. Maybe it's your spouse. Maybe it's your car. Maybe it's your favourite coffee mug. It doesn't matter to anyone but you - this list is personal and it should include anything that comes to mind that stirs the feelings of thankfulness in your heart. Take as long as you need to get five things down. Then think about where your head and heart were when you began, and where they are now that you've taken some time to consider things that really mean something to you. If nothing is changed, you need to rethink your list. Realizing that we already have some pretty amazing things in our life invokes an emotional response that is essential to a mindset for achieving new goals and ambitions. It all starts with a little humility and gratitude. Start today to make thankfulness a part of every day. Add to your list, create a gratitude journal, or simply stop every time you take a drink to consider something that is truly wonderful in your life. You'll be amazed what this little drop will do to the big pool of everyday emotion and attitude.