What the are KPI s? You probably have them and just don t know it. Steve Peterson Vice President of Marketing & Channel Development CellarStone, Inc.
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1 What the are KPI s? You probably have them and just don t know it Steve Peterson Vice President of Marketing & Channel Development CellarStone, Inc.
2 What the. Are KPIs? You Probably Already Have Them and Just Don t Know It February 27, 2014
3 Agenda What the. Are KPI s Examples Discovery Session Tiger By the Tail Q&A
4 Steve Peterson CPA Presenter Held several CFO and Financial Manager posipons Co- Founded three internet start- ups including webkpi in 2008 Vice President of MarkePng & Channel Development for CellarStone Inc., a commission management provider Speaker at various Business Coach and CEO forums Developing a book series called the KPI PlayBook 4
5 Traveled from San Francisco
6 Proud Turf Owner
7 Winning Key Performance Indicators Normally there are less than 10 true KPIs in an organizapon and those are measured and reported daily - Author David Parmenter, Key Performance Indicators Promise of Knowing the Now Copyright 2014 CellarStone All Rights Reserved
8 Winning Key Performance Indicators Critical Success Factors Examples 10/80/10 Rule Key Results Indicators (Max 10) Performance Indicators (80 or so) KPIs (Max 10) Board Package Profitability of top 10% clients # of Sales Leads Financial Results Customer Satisfaction Learning & Growth Internal Processes Staff Satisfaction Community Copyright 2014 CellarStone All Rights Reserved
9 KRIs Key Result Indicators KRIs - tells you how the business has done over Pme PIs - tell you what to do KPIs - tell you what to do to increase performance dramapcally PIs Performance Indicators KPIs Key Performance Indicators Copyright 2014 CellarStone All Rights Reserved
10 Home Depot Case Study Targets based on whether the day is sunny or rainy Save the day! Monday Tuesday Sunny Rainy Sunny Rainy 10 1, ,000 1, ,500 2, , ,000 1, ,500 2,600 Automatic notification to the VP Sales, Regional and Store Managers Copyright 2014 CellarStone All Rights Reserved
11 What is Driving Revenue? On this screen, we see Revenue, Product and Customer Trends Copyright 2014 CellarStone All Rights Reserved
12 Sales Management What are the top products? Which are most profitable? Where? Profitability webkpi Provides Answers Copyright 2014 CellarStone All Rights Reserved
13 Where do your KPIs Come From? Is there a Holy Grail of KPIs Copyright 2014 CellarStone All Rights Reserved
14 Ideas for Industry KPIs Financial Key Indicators Are these KPIs? Fall 2012 Nursery Sod Growers Associa6on of Ontario (NSGA) with funding from the Agricultural Management Ins6tute (AMI) Copyright 2014 CellarStone All Rights Reserved
15 Financial Statements are a good downstream result. What is the source? University of Florida Survey hcp://turf.ufl.edu/research_value.shtml Copyright 2014 CellarStone All Rights Reserved
16 How does mix impact profitability?
17 Industry Concerns Cost of production Collection Price of sod Labor Fuel, Fertilizer Freight Copyright 2014 CellarStone All Rights Reserved
18 Shihs in Markets Selling to Homeowner Wholesale level Commercial developers Retail garden centers Golf or sports field venues
19 KPIs have been around for 40 years Balanced Scorecards helped organize KPIs Drs. Robert Kaplan and David Norton developed in the late 1990s
20 Group Exercise Time
21 Group Discussion What are some of the KPIs in the room?
22 So How Do We Boil Down? Introducing the Science of Bracketology
23 Finding the one KPI
24 The One Thing the business should focus on
25 Tiger By The Tail Take Home Exercise Complete your own brackets but do not share with your management team Organize your management team and have them do the exercise on their own Do not muddy the waters with your own KPIs Collect the results and compare them to your brackets Now you have the Tiger By the Tail especially if the indicators are different than the company s current vision and values
26 KPIs are dynamic so use them to create new revenue paths and service opportunipes SWOT Analysis Get orders out in 24 hrs Streamline internal orders Decrease Customer Complaints by 75% Change packaging
27 Make your KPIs and AcPon Plans Smart
28 Resources Available hcp:// author/steve- peterson/
29 AddiPonal KPI Resources hop://qnyurl.com/mbzskmj Free KPI resources available include the following: webkpi Assessment Form Bernard Marr s The 75 KPIs Every Manager Needs To Know KPI Library webkpi List of Top 100 KPIs
30 So the definipon of a KPI is: The One thing that can be measured daily that drives your business. KPI PlayBook and Survey hcps://
31 webkpi Steve Peterson x110 stevehpeterson/ steve-peterson/
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