In this segment, the speakers discuss a disciplined approach to managing key performance indicators (KPIs) within an organization. Annual targets are decomposed into monthly and then daily KPIs. Department leaders are required to text two numbers each day—target and actual—for metrics such as revenue collected, leads set, and appointments issued. This daily reporting creates real‑time visibility and aligns the team. At month‑end, the leadership team conducts a “KPI autopsy,” comparing actuals to targets, then shifts focus to a three‑month forward outlook, assessing aggressiveness, staffing needs, lead volume, backlog, pricing, and confidence in hitting the numbers. The conversation emphasizes the rarity of daily‑reportable KPIs in most industries, the importance of discipline in reporting, and the strategic use of KPI data for staffing and pricing decisions.
Chapters
Yeah.
So you mentioned those 12 KPIs to essentially manage your business within your people. So how do you manage those KPIs, the forecasted KPIs and the actuals, and then actually put them in places where people can use them, you know, daily, see them daily? Because I think that's kind of a struggle that I have is I might know them, but like people don't know them.
Yeah, it's a, it's, that's a really great question. So every, every yearly target is broken down to a monthly target and then broken down to a daily KPI. It is up to the leader of each department to text 2 numbers every single day. This was our target. This was our actual. Whether it was— whether it was revenue collected, leads set, appointments issued, it was their responsibility to text 2 numbers to the leadership team. Target and actual. And that's— so they knew what their targets were. They knew for the month what they were going to be, and they knew what their daily targets were. And then they had to report on it daily. That's what it's about. It's about daily reporting. And that's the beauty of our business. Unlike most industries, we can daily report on targets. It's very rare that you can do that. And it's a huge opportunity for us if we do it right.
So then it comes down to the matter of the discipline to make sure that that happens.
110%.
Hey, also, I had a question about the KPIs.
Yeah.
I know you were talking about you looking at them on a daily basis. But for the leadership team, are you guys also looking at them on like a last week, last week running, last month running, or what kind of timeframe?
Right. So what we would do is we would look at them on a daily basis, then we would close out the month where we had our targets and actuals by department. We'd have all the department heads filling in what their actual was against target. We would talk about the month, but in all fairness, the month is an autopsy because it already happened, right? It's like, okay, the patient died, move on. So what I wanted to know is let's look forward 3 months. What do we think? Are they aggressive? Are they too— are they realistic? What's your level of confidence? Do we have the right staff in place to hit them? Are we— are we— do we need to hire people? Are we thinking about things right? Do we need the leads? Is our backlog too big and maybe we need to, you know, raise price and maybe slow down some? You know, the thing about getting financials done in this business, it sometimes takes a couple of weeks to close out your P&L and balance sheet, but, but you can instantly close out your KPIs. The, at the end of the month. You can close them out every day. So it gives you real-time data, but then it aligns your team on to think about thinking forward as to how are we going to hit our numbers moving forward.
