If we want to gain long term sustainable profitable growth we need to measure not only what has happened but activities we are now undertaking that will generate results in the future. So what are future performance KPI’s?
Most business owners measure growth in sales and are excited by higher results. High sales are often confused with success. Sustainable success only comes from generating growth in profit and it is increased profitability that generates more cash, pays for assets and ultimately generates wealth. To ensure profitable growth the measurement of the Key Performance Indicators (KPI’s) of your business is critical.
You run a business and you are committed to its success. You have spent considerable time and effort recruiting a quality team with the right attitude, skill set and industry knowledge. So how do you lead this high quality team to achieve the desired results?
We have all been there. The tradesman who doesn’t show up when he said he would, the call to the service centre that goes unanswered, or the waitress who is checking her mobile and not taking your order.
Increasingly customers are becoming more discerning and have more choice, so how do you improve customer service and your profitability? How do you turn customer interactions into repeat business?
In his book The Roaring 2000s, Harry Dent explains the nature of the product and business lifecycle: its slow initial growth phase; subsequent rapid growth due to strong demand as the product is accepted; slow-down as the market matures and demand is saturated; and then decline as the product is replaced by another or interest in it wanes.
“When you’re green you grow; when you’re ripe you rot” said Ray Kroc, founder of McDonalds. Business is a competitive game, and staying ahead requires continuous improvement and effort. The surest way to advance your company is being willing to learn from everyone and anyone. By staying green, you will avoid the curse of being an “expert” – knowing it all and having no desire to listen. You can improve yourself by reading, attending seminars, visiting trade shows, presenting at conferences, and otherwise interacting with knowledgeable peers and associates.
In First Things First, Stephen Covey says “People expect us to be busy, overworked. It’s become a status symbol in our society — if we’re busy, we’re important; if we’re not busy, we’re almost embarrassed to admit it. Busyness is where we get our security. It’s validating, popular, and pleasing. It’s also a good excuse for not dealing with the first things in our lives.”