How to Measure Business Success

measure business success

How to Measure Business Success in YOUR business.

Humans love scores, we love to know how we compare to others. Just look at exams, sports, employee evaluations, even surveys.

How many surveys do you see that say test your XXXX score (love appeal, beauty, knowledge, etc) I know a few have caught me hook, line and sinker.

It is really hard to know where we fit if we don’t score, it is impossible to know whether we succeeded if we don’t know the goal.

Not sure how you measure up? I’ll show you how…

It can help to use an existing framework to define how you will score – the most popular in business are:

  1. KPI – Key Performance Indicators
  2. OKR – Objective and Key Results
  3. KRA – Key Result Areas
  4. GMH – Goals, Methods, Habits

Some “experts” will say you must use KPI or only OKR work. I believe you must use what you as a business find resonates.

Ultimately they all have the same task…

To translate goals into measurable targets in order to compare results.

They are all designed to help you Measure Business Success.

Ultimate Customer Value (KPI | OKR | KRA | GMH)

The gold is not in the method you use but how well you execute them.

Our clients use the Ultimate Customer Value metrics system with great success.

Customer Value is made up of the 4 proven analytical (non-emotional) response elements built into the human buying decision.

  1. Cost
  2. Quality
  3. Speed
  4. Customer Service

By setting up a goal and measurement of these 4 things in your business it gives you the Ultimate Customer Value advantage.

You can clearly see the experience your customers are having on a daily basis when they work with you.

They also allow you to do some powerful what-if analysis.

E.g. What if we want to improve quality?

  • We could take more time and care to improve quality – what does that affect
    • Time may affect cost and speed, will it impact service?
  • Perhaps we invest in technology to improve quality
    • This may come at a cost but may actually improve speed
  •   Can we improve the process, training, other component to improve quality
    • what areas will this impact.

Regardless of which area you want to improve you can model the expected impact on other key components of the buyers decision-making process.

Check out our masterclass for on developing your Ultimate Customer Value measures. KPI MASTERCLASS – Develop Kick-Ass metrics to elevate Customer Service and Increase Profit

Compare the business next door….

The most important thing is to set your own goals and measure business success against them.

Often we want to compare ourselves to other businesses – this is a trap.

Every business is different. To compare will always be apples to oranges.

As you achieve increase the target of the goal, aim higher, get better.

Get your staff involved in setting and owning the targets.

Have fun with it, prize givings, awards & recognition – you may be surprised how your staff take over and find ways to improve.

Soon your will know exactly how successful you are!

That is how you measure business success!

If you liked this you might also want to check out:

Coronavirus COVID-19 BUSINESS READINESS CHECKLIST

The coronavirus has taken the world by storm.

It’s not the deadliest virus ever seen but it is extremely infectious.

This has resulted in strict quarantine procedures for possible candidates, which has in turn put a large portion of the population out of action in affected areas,

There are travel bans in place and we have seen panic buying activities.

One business commentator said “This is the largest restriction on the movement of people around the globe since World War II.”

Don’t Panic, Plan

Don’t panic we have seen other similar issues in the past, SARS, MERS, EBOLA etc. all of which were more deadly but less infectious.

What this tells us is that the biggest impact to your business is likely to be the unavailability of something; staff, customers, supplies, cash…

Use the Coronavirus COVID-19 Business Readiness Checklist to formulate your plan.  

How to protect your Business from Coronavirus COVID-19 fallout!

There is little you can do to stop the virus, the best you can do is plan to weather the storm.

Lucrature and Jazoodle have been working in collaboration to provide businesses with a series of useful tools to help provide clarity and plan for anything that may eventuate from the  Corona Virus outbreak.

Download the check list CORONAVIRUS COVID-19 BUSINESS READINESS CHECKLIST

Here

Get your business Coronavirus ready.

Download the check list here: CORONAVIRUS BUSINESS READINESS CHECKLIST

💥💥 New 💥💥

How to survive a corona-virus pandemic induced recession. Check our latest article and free tools; here.


Other Tools for Your Business

  1. Roadmap to Recovery – Recession Proof and be a Corona Virus Winner
  2. How to get More Money Fast in your business
  3. Business Health Check – Recession Proof your Business
  4. KPI MASTERCLASS – Develop Kick-Ass metrics to elevate Customer Service and Increase Profit

How to use the checklist:

This checklist is design to make you think about your readiness, any policies you may need to put in place, risks in your business and outside your business.
It should help you make a plan.
  1. If you have a plan compare your plan to the checklist items and add any items that are missing and relevant to you business
    • For each item that is missing of different to your plan follow the steps in 2) below
    • If you have something in your plan that is not in our checklist please let me know by commenting on this post or message me
  2. If you don’t have a plan yet. Please make one. A plan will help put your and your staff’s minds at ease.
    • Review each checklist item and determine if it is relevant to your business
    • Think about possible positive and negative impacts for each checklist item (there will be opportunities brought by the Coronavirus outbreak)
    • Determine the best course of action for your business.
    • Write down the problems you need to solve
    • Write down your guesstimate of the impact it may have on your business (best, expected, worst case)
    • Write down things you can do to reduce the impact.
    • Rate the things you can do by impact on solving the problem and effort (this is a simple approach to assess cost /benefit)
  3. Take step back, a break, grab a coffee whatever to take your mind off it for 15-30 min
    • Come back and rank each of the impacts and solutions.
    • Take the top 5-10 items and formulate a plan

You cannot do everything so important to focus on the key things for your business.

You can use this Checklist in conjunction with other tools Jazzodle.com & Lucrature.com are creating as you read this. But please don’t wait get planning.

Whats coming next?

In the coming days I will be releasing more tools, tips etc. Here is a preview:
  • Risk assessment tool – this will help you assess the biggest risks in your business
  • Financial Health checklist – this will come with no obligation 3 months free access to Jazoodle.com to help you model possible financial outcomes from Coronavirus
  • Early warning KPI – these are 3 KPI you can track to alert you to issues in your business before they happen.

Why be concerned about Coronavirus?

As you will be well aware Coronavirus extremely effective a spreading within our communities. It is not particularly deadly what is all the fuss about?
  • First there are a lot of unknowns which scare people.
  • Second It is highly infectious. far more than common flu and previous Coronaviruses e.g. SARS/MERS (but not as deadly)
  • Third people that are severely affected need intensive care, and may need help with breathing. This combined with the need to quarantine means the use of ICU units – these are in relatively short supply, making it easy for our hospital systems to overwhelmed.
    • The contagiousness of the virus also means that many staff will be unavailable (in quarantine) at any given time (when the Doctor in NSW tested positive over 50 other staff in the same hospital went into quarantine). How can we run hospitals without staff?

Business Health Check – Recession Proof your Business

Your Business Health Check assesses the resilience and robustness of your operations. Business Health Check

Ensuring your biggest income generating asset is healthy is more important than ever.

The COVID-19 pandemic recession has caused severe damage to economies.

Many businesses are propped up by government stimulus. Banks have provided deferred payment options. Landlords have provided rental relief.

All of these benefits WILL come to an end. Sooner than most businesses would like.

4 Pillars for Success

There are 4 key aspects that businesses must have working together to ensure success.

Businesses can and do survive without these but if you want to do more than just survive, if you want to have a true success, these are a “must have”:

  1. Vision, Strategy & Goals
  2. Business Functions & Processes
  3. Customer focused KPI
  4. People Management

The Business Health Check

You go to your doctor for physical, you put your car in for warrant of fitness/service.

But what about your business? It also needs regular check-up and care.

This is the same health check we use with our clients on a regular basis.

The Business Health Check looks at capabilities, systems, and processes across 3 key areas of your operations.

  • Planning
  • Execution
  • Results Management

This automatically hones in on the problem area without wasting any time or energy!

The Check-Up Process

I find it interesting that when I bring this out, my customers often let our a big sigh. I feel like I’m a teacher giving a report card to a naughty child.

The reality is, that this has nothing to do with me, they are holding themselves accountable through this process.

It’s a super simple process to assess yourself.

Simply answer each question openly and honestly. Once all questions have been answered you will get a score in the blue box.

For more information about what your score means register your email and I’ll send you a comprehensive report that tells you how you scored and what you need to take your business to the next level.

You can do the Business Health Check online below or sign up to get the free excel version that you can use over and over and over again – just as my clients do.

(if using a mobile phone turn screen on it’s side to widescreen)

If you need any help with the Business Health Check feel free to book an appointment here.

Register your email for your own copy of the full featured Business Health Check



     

    Other great reading:

    1. Roadmap to Recovery – Recession Proof and be a Corona Virus Winner
    2. How to get More Money Fast in your business
    3. The best way to Measure Business Success
    4. How to Protect your business from a COVID-19 Coronavirus Recession

    Roadmap to Recovery – Recession Proof and be a Corona Virus Winner

    (Scroll down to get your Free COVID-19 Priority Planner)

    On the Corona Virus | COVID-19 Roadmap to Recovery there will be clear winners (and unfortunately some casualties).  I’m guessing, like me, you’d prefer to be a winner.

    I’ll show you how…

    Although I work primarily with Service businesses and therefore my tools and techniques focus on the specific needs of service businesses, this approach has been applied to many industries with incredible success.

    The pandemic driven recession is a bit different to other recent recessions primarily due to the extended period of uncertainty that we will likely experience. We have seen 2nd and 3rd waves of COVID-19 around the world which has resulted in further restrictions, thereby increasing the depth of recession.

    It is also likely that governments will not continue to fund stimulus at the same rate as more waves of the pandemic occur purely due to the enormous cost and future political fallout (they still want to be in power on the Road to Recovery).

    As we’ve seen from previous flu like pandemics the virus will mutate, this brings with it further challenges and opportunities.

    COVID-19 the road to recovery will be bumpy and at times may feel more like a rollercoaster, but you are not alone, hang in there and focus on the few key thing you need to get through this.

    Just like any other recession there will be massive risks but also massive opportunities. Be ready to grab on to any opportunities that come knocking! – The Most successful businesses will not just reopen but reinvent…

    Don’t miss:

    1. The Road To Recovery video
    2. The Road to Recovery planner link
    3. I’ve also added a link to a vlog series that shows you how you can develop your strategy for 2021.
    4. Check out our Content-Hub for loads of free information to make your business great

    What to focus on:

    With so much uncertainty and change it is important to be stay focused on what is really important and remove the noise. There are 7 key areas that we have identified are critical to success in the current recession. Forget the rest!

    1. The six key components you need to ensure maximum success as we navigate through the next recession
    2. What keeps you up at night – critical to give you the confidence you need to move forward
    3. Cash flow matters – critical to success in uncertain times
    4. Innovation – critical to get and stay on top
    5. Communication – in our new world this may have the biggest impact on your business
    6. Opportunities – discovering and assessing ability to exploit opportunities is the key
    7. Well Being – surprisingly important in current times

    Watch the 3 min video below to learn more.

    After watching the video keep reading to learn how to recession proof your business.

    How can you ensure your business wins?

    I’m about to give you all the tools you need to beat the competition.

    Best of all because I believe in the KISS (keep it simple stupid) method anyone can do it for their business.

    So how bad is it?

    SCOMO (the Australian Prime Minister) calls it “The recession we didn’t have to have”.

    I don’t agree,  as I posted back on 11 March:

    As you can see I thought there were already cracks in the economy and had a high probability of a recession.

    IT IS BAD!

    Take a look the major headline and the statistics that go with it.

    Worst recession in 100 years.

      • I don’t know about 100 years, but it is certainly much much worse globally than the 2009 Global Financial Crisis (GFC).
      • 3000% greater reduction in GDP (global production) is expected.
        • See the following from the IMF website
    • Unemployment is a major indicator of economic health. Although the numbers are bad, it is not uniform
      • Globally it has been estimated that we have over 350,000,000 job losses from COVID-19 whereas the number was around 25,000,000 during the GFC. (I heard this statistic from a call with global business leaders but have yet been able to verify it).
      • In Australia during the 1990’s recession unemployment peaked at 11%, now we are sitting right around 7.1%. Ahh so maybe we are ok…? Ahhh well… There are some catches:
        • 6.6 million Australians (estimated) are on Job keepers, who might otherwise be unemployed. They are counted as employed.
          • What will the end of reduction of Job Keeper look like? 
        • Australian Bureau of Statistics tells us that “unemployment rates have become successively higher with each economic downturn”. (Also jobs don’t fully recover…)
          • This indicates that based on history the worst is yet to come…
        • Under-employment sits at 13.1% that means these people are employed but with reduce wages.  Unfortunately this stastictic is relatively new so we don’t know what it looked like back in the 90’s

     

    What do all these numbers and graphs really mean?

    Essentially what all this tells us is that the current state is very bad. The worst that anybody currently working in a job or has a business has ever seen.

    It is significantly (10 times) worse than the GFC and likely worse than the 80’s/90’s recessions.

    Sorry to be the bearer of bad news!

    But there is hope.

    There is history and history tells us that we can get through it and there are some specific things you can do to protect your business to ensure your come out a winner.

    Watch the Roadmap to Recovery 3 min video to learn how.

    This simple priority planner brings all the key strategic, financial, customer, staff, and well-being focal points into a simple 2 page plan.

    It should be updated and revisited regularly. You can use for yourself personally, your whole business or for each key business department/function.

    It’s simple but powerful!

    Get your free copy of the Corona Virus | Roadmap to Recovery Priority Planner, make sure you come out a winner:

    Roadmap To Recovery Priority Planner V1.0

    Download the planner to use in your business today. It’s free, no obligation no sign-up. It’s a simple 2 page plan.

    It is your plan, feel free to adjust it, change it to specific things in your business and life, make it your own. Use this plan with your managers and staff, let them adjust it for their needs.

    The key thing with any plan is motivation, when someone is engaged in the planning process and writes their own plan they are more likely to hold themselves accountable and ultimately achieve against it.

    This plan is for you, make the most of it!

    Want some help ensuring your business is on the winning side?

    I am opening up my calendar to support businesses. If you want help to understand and/or apply these tools to your business. Please book a 45 min phone meeting with me here.

    Book An Appointment

    Recession-proof Your Business

    In good times and in bad there are some things you can do in your business to ensure your prosper no matter what the conditions are.

    1. Create and Live your Vision – this is critical. The vision sets the scene for decisions made in your business.  These serve as the “house rules” that help people choose right over wrong.
      1. Learn how to create your vision & strategy here.
    2. Design deliberate Business Processes – these are the engine room of your business. They must fit your Vision and easier they are to follow the better they are. Business processes are happening with or without you… Make it with you.
      1. We have some great articles about setting up your business processes here.
    3. Measure – you only “manage what you measure”. There are some rules around measuring your business. My absolute No.1 rule is make then Customer Focused.
      1. Get our Ultimate Customer Value KPI Masterclass here.
    4. Actively Manage your business – this is not for your to do it is for you to manage. You didn’t build your business to work 100 hrs a week. You don’t need to if you have the right people management framework in place.
      1. Learn more about Active Management here.

    Create your Roadmap to recovery today!

    More Corona Virus | COVID-19 Free tools:

    Free Downloads:

    Make your business a winner with our proven  Corona Virus | COVID-19 Roadmap to Recovery Planner

    COVID-19 Road to Recovery

    FAQ (Frequently Asked Questions):

    Will this work for my business?

    • Yes. The concepts addressed in this article are tried and true business and management techniques. They have been around for decades – and with good reason – they work.

    Do I need special IT systems or knowledge to use your Roadmap to recovery planner?

    • We use Excel and have built this planner in Excel however you can use a PDF versions and print a hard copy, if you are a google user you can usually open Excel files and convert to google sheets. If you have any issues just reach out to me.  (If using a hard copy you may need calculator…)
    • This is a simple planner and I don’t think you need any specialised knowledge, but you may need to apply some thought to some areas if you have not considered them before.

    If I have questions about this article how can I get them answered?

    • I love questions particularly difficult ones. Please feel free to reach out to me using the contact us form or connect with me on LinkedIn and we can chat.

    What happens if I download the planner but need some help?

    • Great if yo need help that means you are taking action. I love helping action takers. Reach out me via our contact page, or simply reach out to me via LinkedIn for a chat. I’m also offering a free call to anyone that gets “stuck” book a call with me here (they are 45 min slots but we can finish early).

    Why are you giving away great content for free?

    • I am passionate about helping businesses achieve their goals. I strongly believe that in most cases great advice comes at great expense, however, I am working hard to bring costs down by leveraging technology and new approaches. Despite this I recognise not everyone is ready or in the financial position to use my paid services. However, if I help you now hopefully you will see the value and join me when you are ready.

     

    Case Study: HOW A MARKET RESEARCH BUSINESS CHANGED THEIR BUSINESS MODEL TO CARVE OUT MARKET SHARE

    The Catalyst

    I have known Chris for a number of years, we are friends and we all know that sometimes business and friendship don’t mix. Fortunately we did not have that issue here.

    Chris and I were chatting at a BBQ, I mentioned I was reformatting my roadmap approach to ensure clients get the most value.

    After further discussion I thought he might be a good guinea pig to test my new approach.

    Chris agreed however he assured me that it was unlikely we would find anything of interest.

    The Discovery

    Within a couple of hours it became very clear that Chris’ business processes were totally misaligned with his key business goals.

    His business had some unique assets and ideas that his competitors just did not have on their radars.

    They were heavily focused on selling data and delivering data, whereas the real value in what they provided to clients was not data but insights. Time and time again his customers revelled in the insights, but often they were the last minute injection into the sales and delivery processes – making them an afterthought rather than a main event.

    The Prognosis

    After some digging we found that the least amount of effort and focus was put on the very thing that customers wanted. We also found that it was being sold as a free add-on e.g. “would you like fries with that (for free)”….

    Not only was this a goldmine opportunity they are virtually the only ones in their industry offering it.

    We also found that the teams were in silos this meant that real opportunities across the 3 main lines of business were being totally missed.

    Customers were looking for end to end solutions but no-one was giving them one.

    The Solution

    Using our Financial Peak Performance™ framework, we put together a Road-map plan that focused on 2 key processes:

    1. Sales Process – Make insights a selling point, be a knowledge consultant rather than a data researcher.  The other major missed opportunity in sales was that each business type was managed in a silo, there was not client cross pollination.
    2. Delivery Process – Make insights the deliverable. Not only does this reduce effort down the track but it allows the

    We also created a set of customer focused KPI that could immediately see whether changes we made to these processes resulted in the gains we expected – this is important because you don’t want to be going by gut feel on whether changes are adding value or not – you want to go by value actually added.

    The Result

    Chris told me right after our Roadmap session “Thank you. I did not expect to get so much from our session. It has changed the way I look at my business forever.…”

    I was so happy because I was secretly nervous about working with someone I knew socially.

     

    Secret to Success: Don’t set your Business Goals. Crazy but it works!

    The Secret to Success: Don’t set your Business Goals. Crazy but it works!

    Setting Business Goals has proven to increase success by 33-47%.

    I’ve personally added up to 86% more value to businesses by implementing our business operating framework which uses a different approach to set business goals.

    So why do I say YOU shouldn’t set goals in your business?

    Critical components for the secret to success:

    • Success takes drive, determination, and focus.
    • Setting goals is a very effective way to drive people to focus on business goals.
    • People are individuals we need to ignite the drive in each and every person.

    If you want to achieve your business goals you must be able to mobilize everyone involved in your business to focus on the thing you want to achieve.

    This includes employees, customers, suppliers, and business partners.

    The problem here is that each of these people may not be aligned with your business goals. They may have their own personal direction and desire that isn’t perfectly aligned with what you want to achieve in your business.

    How do you get all these parties aligned to YOUR business goals and hold them accountable?

    Secret to success #1 Publicize your goals

    Every business owner has goals. But many keep them hidden away silent but to a very few people in the business.

    Those that publicize their goals for everyone to see have a significantly higher chance of achieving them.

    Publicizing goals is good. It tells others what you’re trying to achieve and brings them along the journey.

    But it’s not enough….

    99% of the time the publication business goals are a one-way street, it is simply telling others what YOU want.

    Some will hear it, some will believe in it, but only a very few will be 100% aligned with your business goals.

    This is a fundamental mistake most Business Owners make. It happens across the board, in global multi-nationals, and in small family-owned businesses.

    The result…. Lack of staff commitment to your business goals.

    Secret to success #2 Get others involved

    The key is to get the people in your business to set the business goals themselves…

    If this sounds scary to you, it is!

    It was scary for me in my business, it has been scary for every client I have worked with over the last 20+ years.

    But the results are worth it!

    Secret to success #3 Take away the Fear with a proven framework

    It’s less scary using a proven framework. A tested and proven approach that helps you set goals and empowers staff to achieve them.

    I’ve been using and teaching clients to use this approach for many years now with unbelievable results.

    32%-89% improvement in fact.

    Using this model the largest increase in profit I have seen was over 200%. The smallest was  32%.

    Using existing staff and no new technology solutions – purely with good old fashion focus!

    And you can use this approach not just for profit. For any area of the business you like.

    I’ve even used this same framework to improve Customer Experience and change Customer Behaviours.

    Our framework, Financial Peak Performance™, provides the approach.

    It involves staff at the center of business goal setting. Provides a clear path to measure and celebrate success, and really really effective communication across the business.

    When you involve staff the right way each person’s individual goals come into alignment with your business goals…. this is extremely powerful.

    This is how you get consistently overachieve your business goals.

    Secret to success #4 Take action

    You can do this in your business too. The first step is to take action.

    It took me 2 decades to create and perfect the Financial Peak Performance™ framework.

    I was lucky enough to have the opportunity to test and refine the framework over hundreds of businesses, across dozens of industries.

    You don’t need my framework to do this in your business, you can do it on your own, it might not even take you 2 decades to perfect…

    But if you want to unlock that potential value in your business right now, our Financial Peak Performance™ framework will get you there in weeks not years.

    If you want to get started I offer a free growth clarity call to make sure we are on the same page and I can really help your business (I can’t help everyone).

    Want more knowledge?

    We’ve curated these pieces of content just for you…

     

    About the Author:

    Brad Horan is an accomplished Business Advisor and Chartered Accountant.

    He loves business and particularly the human psychology of business decision-making and its role in achieving success.

    Brad has over 20 years of experience in providing Business Advisory services across finance and operations. Early in his career, he recognized that there was a disconnect between operational and financial goals within businesses. This disconnect often resulted in businesses taking different conflicting actions despite trying to achieve the same result.

    They unknowingly sabotaged their own business, and in extreme cases, they led to the demise of businesses.

    Brad worked with hundreds of businesses over the years big and small, eventually coming up with a framework to drive ownership through all levels of the business. This improves employee relationships, customer experiences, and ultimately reduces work and stress for those managing the business.

    Businesses big and small have benefited from Brad’s unique services; Midas, Diamond Pasta, Universal Pictures, HSBC, MetLife, Otis, Transport NSW, Hannover Re, Exxon Mobil, Care Fusion, Cleaning Star, Lonergan Research, Jim’s antennas to name a few.

    How to Protect your business from a COVID-19 Coronavirus Recession

    A COVID-19 Coronavirus recession is looking likely but it may not happening. (updated June 2020)

    You can protect your business, by adjusting your business strategy to ensure your business success.
    I’m not here to preach doom & gloom, I just want all people and businesses to plan for the worst so they can come out on top.

    Want to protect your business from Coronavirus COVID-19 induced meltdown?

    I’ll show you how.

    Ok – just a few things 1st.

    • I don’t know why people want so much toilet paper.
    • COVID-19 is not as deadly as other viruses (SARS/MERS)
    • We’ve had more flu victims over the last year than COVID-19 Coronavirus victims

    So what’s all the fuss about????
    Here’s my view:

    • The global economy was already teetering on the edge with a slow down in many global markets eminent. COVID-19 is simply a catalyst.
    • Death rate from the COVID-19 is not the main issue, the issue is the rate of spread could overwhelm our health systems.
    • Serious cases require ICU treatment. We don’t have thousands of empty ICU units laying around doing nothing. So how do we manage a mass spread like Italy?
    • As more people get sick the rate of spread can also affect the number of people available to support patients – hospital staff, cleaning staff, etc.
    • The quarantine approach will likely affect all businesses, supply chains, etc. We may see a Coronavirus Recession, or even a Global Coronavirus Recession.
      • Quarantined & sick people will produce as much,
      • Quarantined & sick people spend their money on very specific things (e.g. Panadol) and not other things (e.g. drinks at the local pub).

    I’m about to give you the tools you need to survive (absolutely free – no sign-up, no trickery)
    So what’s all the fuss about????
    Here’s my view:

    There are several things you need to think about. I have highlighted the main topics here. Download our comprehensive set of tools to get the full picture:

    1. First and foremost is Health and Safety – you must prioritise health and safety over profit at this time.
    2. Reassess your Business Strategy – focus on Cash Flow over all else in the short-term
    3. Implement Remote Working capabilities – this includes your sales cycle. Plan for shutdowns for you and your suppliers.
    4. Look for opportunities – there will be demand for delivered goods, online services, perhaps safe travel options
    5. Secure your Supply Chain – we have already seen kinks in the armour where goods are sourced overseas

    Using our free tools below will give the best chance of Business Success…
    So what can you do?

    I’m not going to give you advice on how to protect your health (I’m not qualified) but I do have some ideas on how you can protect you business.

    I’ve been collaborating with Andrew from Jazoodle to come up with a comprehensive set of tools to help you plan for a COVID-19 Coronavirus Recession.

    Use these tools to plan for the worst, whilst hoping for the best:

    1. Coronavirus COVID-19 BUSINESS READINESS CHECKLIST
    2. Coronavirus COVID-19 RISK ASSESSMENT & MATRIX
    3. Coronavirus COVID-19 FINANCIAL HEALTH CHECK
    4. Coronavirus COVID-19 3 EARLY WARNING KPI TO KEEP YOU BUSINESS IN CHECK 

    Jazoodle is also offering free access to there financial modelling system to help SME businesses (details within Coronavirus COVID-19 FINANCIAL HEALTH CHECK) – Use Promo Code
    Lucrature3

    Check out the Podcast in Audio Only or Video format
    Audio Only; Here
    Video version; Here

    Please Help by taking our Coronavirus Business Survey:
    Fill in our Business Impact Survey here:
    Coronavirus (COVID-19) impact on Australian Businesses – Survey

    Free Downloads:

    I am opening up my calendar to support businesses. If you want help to understand and/or apply these tools to your business. Please book a 15 or 30 min phone meeting with me here.
    https://go.oncehub.com/ChatWithBradHoran

    About the Author:

    Brad Horan is an accomplished Chartered Accountant, that loves business and particularly the human psychology of business decision making to achieve success.

    Brad has over 20 years experience in consulting to businesses across finance and operations. Early in his career he recognised that there was a disconnect between operational and financial goals within businesses. This disconnect often resulted in businesses taking different conflicting actions despite trying to achieve the same result.

    He recognised these conflicting actions were at great expense to businesses and their employees. In extreme cases they led to the demise of businesses.

    Brad worked with hundreds of businesses over the years big and small, eventually coming up with a framework to drive ownership through all levels of the business. This improves employee relationships, customer experiences, and ultimately reduces work and stress for those managing the business.

    Businesses big and small have benefited from Brad’s unique services; Midas, Diamond Pasta, Universal Pictures, HSBC, MetLife, Otis, Transport NSW, Hannover Re, Exxon Mobil, Care Fushion, Cleaning Star, Lonergan Research, to name a few.

     

    Additional reading curated for you:

    1. Roadmap to Recovery – Recession Proof and be a Corona Virus Winner
    2. 1 Hour of clarity for a successful business and a better life.
    3. How to get More Money Fast in your business

    Case Study: HOW A FINANCIAL SERVICES CALL CENTER WENT FROM ZERO TO HERO AND WON A PRESTIGIOUS NATIONAL AWARD

    The Catalyst

    Customers were unhappy, the wait queue was getting longer and longer. Staff were complaining and staff turnover was at an all time high – who can blame them you would frustrated too if you were constantly listening to unhappy customers all day. Day in, and day out. The business leaders had tried “everything” they were exhausted, frustrated, and overwhelmed with everything they had tried, but failed with. They had some ideas but had lost the confidence to choose because the issues they were facing felt bigger than Ben Her.

    The Discovery

    When I first met with Toshi and discussed the issues he was facing in his business. I could feel the frustration and concern. He knew the poor Customer Service and high staff turnover was quickly turning into a downward spiral. He had thrown more staff, more training and ore money at the problem but nothing seemed to stick. His management team was adamant they need 20% more staff to bring their 3 centers up to meet performance targets and stem the turnover problem. We performed our usual RoadMap review of the business. As you can imagine I was really really nervous when I discovered they were already overstaffed…..

    The Prognosis

    Current processes need restructuring, they were not set up to service Customers in an efficient and effective manner, nor were they structured to achieve the business vision and goals.

    The business KPI and communications were not functioning effectively. Essentially they were measuring the wrong KPI and did not have an effective way to identify issues and opportunities and learn from the best performing staff.

    We knew that simply adding more staff was not going to fix the problem. We needed to address the underlying gaps in the business processes and the management framework to move this business forward.

    The Solution

    Using our Financial Peak Performance™ framework, we restructured the processes and set up specialist teams for complex situations. We shadowed the best performing staff and identified a bunch of quick help examples and best practice materials to improve the speed and consistency of service.

    Once we implemented Ultimate Customer Value KPI™ the business could see exactly what the customer was feeling in Real-Time. We added an Active Management framework that held staff accountable for resolving issues and sharing those solutions throughout the business. Creating a continuous improvement loop.

    The Result

    I was honoured when Toshi invited me and my team to their internal awards ceremony. We were the 1st ever group to be invited outside their business.

    He was so proud of the work we had done together. He said to me “you must come, my people, those who are getting rewarded would never have achieved the level they have without your help.”

    Customer service was through the roof tracking at 97% (up from 49%, target 80%). It was so good they won a national award for best customer service (across all industries). Wow what a turnaround!

    Now that business could see what the customer was experiencing and the had the management framework in place they could take rapid action. Customers were happy, Staff were happy (in fact staff turnover is the lowest in the industry).

    Whats more the business now had 15% additional capacity, remember when they said they needed 20% more I said they were already overstaffed? Yes they had 15% more staff than they needed. I asked Toshi to look at reducing this cost, but he didn’t want o do that instead using this capacity to expand their service offering and offer better service than the competition.

    Toshi was was now much more relaxed, he was a different guy compared to when we 1st met. He was working less hours, was delegating more tasks to his team and was confident in the decisions they were making.

    He said to me “You did more than improve my business, you gave me my life back”.

    KPI MASTERCLASS – Develop Kick-Ass metrics to elevate Customer Service and Increase Profit

     

    In this KPI master class I will the answer the Five W’s – Who, What, Where, When, and Why.

    This Masterclass will cover the following topics:

    1. The definition of KPI – Key, Performance, Indicator
    2. What Customer Value Chain KPI or Customer Service Metrics are
    3. The importance of KPI in determining Customer Service / Customer Value
    4. How measurements can provide a higher level of Business Success
    5. How you can implement Ultimate Customer Value metrics in your business right now

    Other topics you may be interested in:

    How to develop your successful Business Strategy

    Innovation at its best – what BMW engineers have to say

    Having the ability to track and take action on our Ultimate Customer Value is critical to success. If you do not have this in place you are flying blind!

    Who – should have KPI.

    Typically we think of KPI in a business sense but that is not the only place they are used. We use them in sports e.g. batting/bowling averages for example. They are used in Trading and gambling e.g. odds, payout, and win ratios.

    We even have KPI in our technology – battery performance, energy consumption (cars/appliances), internet performance are all areas in our everyday life where we use KPI without even thinking about them.

    Who should have KPI? Every business should have Ultimate Customer Value (UCV) KPI in my view. Having the ability to track and take action on our Customer Value is critical to success.

    Customer Value is made up of the 4 proven analytic (non emotion response) elements built into the human buying decision.

        1. Cost
        2. Quality
        3. Speed
        4. Customer Service

    When making a buying decision human being quickly analyse these 4 factors to determine the value. There are emotional factor to be considered also but these are almost impossible for us to accurately measure whereas Ultimate Customer Value or Customer Service Value we can measure within our business on a daily basis!

    If you do not have this in place you are flying blind!

    I’m small, I have an intimate relationship with my customers, I don’t need UCV KPI….. I hear this a lot. The reality is that you may forget that you were overdue with a client or that you had to change out the product due to quality issues 3 months ago. You have forgotten because you are busy but the client has not forgotten.

    All too often we are left scratching our head when a customer leaves or complains – we didn’t see it coming….. That’s because we are not tracking their value experience. Once you track it you can keep refining it until it’s perfect, otherwise it is hit and miss.

    In additional to every business, any person wanting to to understand the performance of something should use KPI.

    Who = everybody (we already do)

    All too often we are left scratching our head when a customer leaves or complains – we didn’t see it coming….. That’s because we are not tracking their value experience. Once you track it you can keep refining it until it’s perfect, otherwise it is hit and miss.

    What – is a KPI?

    KPI is short for Key Performance Indicator.

    Let’s break this down before we look at it in total.

    K is for Key – what is a key?

    A key for a lock, a keyboard, a musical instrument, or key for example in keynote speaker. Each of these keys drive towards a predetermined action. A key locks or unlocks a door, a keyboard key creates it a digital signature that can be translated into letters or pictures or movements, when striking a key in music there’s a predetermined known sound that is expected from that key, even the keynote speaker is typically design to drive interest and get bums on seats at the event.

    This is critical because where there is no predetermined action or we don’t know what action we want from a KPI, it’s not really a KPI.

    If we don’t know what action we want from a KPI, it’s not really a KPI.

    P – is for performance . The typical definition for performance is execution of an action to accomplish something.

    Whilst a key is designed to provide predetermined outcome, performance is execution of the action to accomplish that outcome. This is pretty cool because it means a single KPI must be measuring both the execution and the accomplishment.

    I often see KPI setup that only measure one or the other for example measuring sales as a value this is the outcome but does not measure the execution, we may measure the number of hours it takes to do something, this is execution but does not measure the accomplishment.

    A good way to look at performance is by using the formula output divided by input equals performance (p=o/i). Output is the accomplishment and input is the execution value.

    Using sales again, a simple example of this might be sales per hour.

    The great thing about using a true performance formula is you’re measuring both efficiency and effectiveness at the same time. Let’s go for a simple example.

    Bob and Joan are both salespeople at ABC company. Bob is old school, and although almost retired he has not let up at all. He pulls the highest amount of sles every month. He has a lot of connections within the industry and makes a sales primarily through face to face meetings, coffees, lunches, and the like.

    Joan on the other hand is new age she loves digital. Joan has a young family and requires flexibility, because of this she works less hours than Bob.

    Over last month Bob made $80,000 in sales he works 50 hours week on average.

    Joan on the other hand does $60,000 in sales over the same period and she works an average of 30 hours per week.

    We decide to set the KPI of sales dollars per hour worked.

    You take Bob’s $80,000 divided by 200 hours for the month gives us $400 of sales per working hour.

    Let’s look at Joan we take her $60,000 divided by 120 hours and that gives us $500 per hour.

    See that’s interesting Joan is actually 25% more efficient and effective than Bob.

    The great thing about using a true performance formula is you’re measuring both efficiency and effectiveness at the same time.

    This is an example of just one month across a sales cycle which is typically lumpy, on it’s own with just 1 month of data this doesn’t mean much, however if this was regular it would warrant investigation.

    We will want to understand whether there are any opportunities to learn from Joan’s approach to apply to Bob and others.

    Importantly if looking at only the sales value Bob would be the superstar, perhaps we would be encouraging Joan to take more coffee and lunch meetings because that gets us $80,000…

    Whereas enabling Joan to work an additional 20 hours would likely give us more sales than Bob is providing.

    I’m not suggesting we fire or replace Bob he may be a valuable member of the team he may have a wealth of information and connections that we still require. We may like Bob in our business!

    However now that we have a true performance metric of sales $ p/hr we get the right information to assess the situation and make decisions based on both effectiveness and efficiency.

    The third letter in KPI is for indicator.

    I see some businesses that create a tremendous number of ”KPI” in the hope that the result will tell me exactly what’s wrong and give me a solution. Sorry that is not going to happen!

    Indicator means to point to something, to direct towards, it doesn’t give an exact result and certainly does not solve the issue.

    To identify the root cause of an issue and solve it you need to do some investigation. Discuss with staff, stakeholders, and maybe even customers. You need to come up with an action plan and apply a solution to see whether it resolves the issue. There is no way around this.

    More KPI will not give you a solution it simply dilutes the “Key” in KPI making it confusing for staff to understand what is important.

    Instead invest that time in applying problem solving skills, invest time in discussions with staff and customers. This will not only help resolve existing issues you will also have more engaged staff and customers and it will generate Innovation within your business.

    It’s not about the KPI score it’s about the discussion and resolution it’s about moving the KPI in the direction that you want the business to go in.

    I see some businesses that create a tremendous number of ”KPI” in the hope that the result will tell me exactly what’s wrong and give me a solution. Sorry that is not going to happen!

    What – Easily understood performance metrics that drive people to take action.

    Where – should I have KPI in my business?

    The short answer is, it depends…

    It depends on the core functions of your business the ramifications of cost, speed, quality, and service of each process. The size of the business has an impact, how easy it is to communicate and keep your business on track? The business culture and type of people working within your business will also have impact, unfortunately there is no magic number, no Magic Bullet.

    But there are some basic rules you can follow. Where you should have KPI in your business is based on your business strategic direction and its success driver’s.

    First focus on those processes and steps that add the most value to your business along with those processes and steps that can cause the most pain in your business if you don’t do them right.

    For example in manufacturing where you are heavily systemised and machine-based you absolutely want your KPI at each process get that provides an input for another step or final assembly. This will help improve your quality assurance which is far less costly than adding quality control (I will wrote an article on quality assurance vs quality control – check out my blog in a couple of weeks here).

    In larger firms you would typically have your KPI said in each function or area. There is a cost vs benefit decision to be made here. Processes that drive your sales revenue and your main components of cost should have KPI to drive to correct outcomes.

    Basically if it’s important to manage that process to be successful in your business I would recommend you set up Ultimate Customer Value KPI in that process.

    However don’t forget less is more!

    Have less KPI but make them consistent across functions and teams. This will provide a management operating system that allows you to compare teams, divisions, and processes across functions. You will understand which are improving and transforming and which are not.

    Setting the right KPI in the right processes is absolutely critical to achieve Financial Peak Performance and business success.

    Focus on those processes and steps that add the most value to your business along with those processes and steps that can cause the most pain in your business if you don’t do them right.

    Where – where they will have the most impact on both the sales and cost driving processes.

    When – to set up and review KPI?

    In defining the “When” we have two questions to ask – first of all when should a business implement KPI, and second when/how often should the KPI be reviewed.

    The first one is easy – Yesterday, or at least right now!

    Whether your business is brand new or mature, in growth mode or in mature stagnation, it doesn’t matter – now is the time to implement KPI. KPI are critical to success whatever stage your business is in.

    However for your KPI to be effective they must be aligned to your business strategic direction.

    Yes that means you need a strategy before you set KPI. If you don’t have one sit down right now and work it out. It should be super simple and fit on 1 page. Most clients I see have a strategy even if they don’t have it written down. Write it down and tell people about it.

    If you need to build out your strategy answer these questions. – Where will you play? How will you win? What needs to be true to succeed?

    The second “When” – when should we review and revisit our KPI?

    Review is daily this will give very quick response and visibility into your business. If your business is running everyday, your KPI should be running everyday.

    It’s not enough to simply review your KPI everyday you must review identify variances, investigate root causes, and take action on a daily basis. That’s not to say you will solve every variance everyday of course some things take time to investigate and get to the best solution. You must be taking down issues and forming actions every single day.

    This brings KPI management into the everyday business activities it is no longer a monthly round table of hot air from managers, it becomes the guideline for staff to make every business decision throughout the day.

    This is why it is 100% critical that those KPI be aligned to your business strategy.

    Review KPI daily this will give very quick response and visibility into your business. If your business is running everyday, your KPI should be running everyday.

    When – Now, Every Single Day!

    Why – do we have KPI?

    To measure stuff of course – we all know that. But why do we want to measure stuff?

    The “Why” is not to just to measure something. The “Why” is to determine whether outcomes seen in the execution of our daily business activities is the outcome that we are aiming for based on our business strategy.

    Let’s take it one step further, we have a KPI in order to identify variances and take corrective action to ensure we achieve predetermined outcomes within the business goals (strategy).

    There have been a ton of studies into happiness within the workplace and one of the key things is that employees want to know their work is valued and are even happier when they’re rewarded for achieving highly valued work.

    Another really key “Why” of the KPI is to show the value of the work done, once staff see how their work fits into the Ultimate Customer Value KPI they can immediately understand the value of their contribution to the business.

    There you have it the 5 W’s of KPI development.

    Get to it – develop your Ultimate Customer Value KPI today.

    If this blog resonated with you, I would love to have a chat. Book a FREE consultation to see how I can help your business achieve Financial Peak Performance.

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