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Previously I have set out the reasons why having a Business Plan in place when running a business was important.  One of the key sections in the Business Plan is Key Performance Indicators
– sometimes called a Company dashboard.

Essentially what this sets out to do is to measure how the different aspects of the business are performing.

Therefore each month you should review;

  • Marketing (how many leads, where did they come from, what was their quality)
  • Sales (how many quotes, size of pipeline, conversion rates, reasons for wins, reasons for losses, business won)
  • Fulfilment (or Delivery) (for a service business this would be number of days or discrete jobs, profile of work, average value, time and budget measurements, customer feedback;  for products this would be volume of products by type and by value, etc)
  • People (number of appraisals, staff retention, training days, skills matrix)
  • Financial (revenues, direct costs, overhead costs, aged debtors, creditors, cash – and Sage doesn’t deliver this as it only supplies month and YTD.  This does not show trends)

There is no one size fits all.  You just need to think about what information you need to measure each month to make sure you are where your Business Plan expected you to be.  And gathering that information creates focus and awareness that will almost certainly see the figures improve.