Speaker (GM-focused advisor) explains KPI importance for home-service general managers who delegate admin and operations to focus on sales. Emphasizes role clarity, avoiding perverse incentives, and defining clear success thresholds (red/yellow/green). Lists key KPIs to track: customer acquisition cost, close rate, efficiency score (and pay-for-performance effects), admin response metrics (answer time, missed calls), and estimate lead time.
Chapters
KPI's very important for sales operation and admin. You are in the full time GM role, which means you have delegated admin, you have delegated operations and you're mostly focused on sales. This is an exciting part of the business because you can grow very quickly because all of your time is focused on sales, that is getting more work, that is growing the business. Fun and exciting for entrepreneurial types. Also usually a tight spot from a profitability perspective because you're having to afford two full time overhead positions and that could be very hurtful from a profitability perspective. So let's get through it as fast as possible. So to prevent that, you need clarity. You need clarity of the roles, you need clarity of what metrics they're responsible for and you want to make sure you don't have perverse incentives. And third, have very clear metrics of success. So if your close rate is something that you measure in sales like, you should use the speedometer to know, okay, this is when you're good, this is when you're bad, this is when you're great. And those are like red, yellow, green of what those metrics should be looking like. So this is what good looks like, this is what bad looks like. This is when I'm going to get in your business, this is when I will not get in your business. Business. I'll let you do your thing to very clear metrics is the first point what good looks like in each of those metrics. So I'll give you the basics. For sales, I need customer acquisition costs, I need close rate because that's going to be number of leads coming in, customer acquisition cost, like how much it cost me to get someone in and what percentage, how efficient am I at getting new customers? I'm looking at customer acquisition costs and close rate for sales. For operations, I'm looking at efficiency score because if my efficiency score is high, my team is making a bunch of money on P4P. And if they're making a bunch of money in P4P, the culture takes care of itself and quality goes up because now there's real money on the line for yellow slips, for admin answer time, how long it takes them to answer the phone, what percentage of calls are missed. The bigger thing in my opinion is estimate lead time.
