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I have been working on a series of posts detailing my thoughts on how I would fix or turn around a business operation. We’ve talked about financials, how to get a handle on your customers and understanding youremployees in an effort to get them more engaged, and finally, we talked about processes.

When you walk into a situation that requires immediate improvements, you have to start the triage process almost immediately. Michael Watkins will tell you to wait 30 days of your first 90 days. I’m not sure I have ever been afforded that kind of time.

I like to get my hands around data quickly. If the data I want isn’t currently being collected, the first step is to begin the process of pulling it together. This is always coupled by what the military folks are calling HUMINT. Human Intelligence. Talk to everyone. Make sure you are getting the raw feed so to speak. Make sure it isn’t filtered by management.

You need both facts and data and the human take on things. You can make data support your assumptions. By the way, try not to have assumptions. Try to begin with an open mind. Let the stories unfold.

I like the term “Key Performance Indicators” or KPIs. I want to see

Financial KPIs:
Revenue
Operations Costs
Profit
Contribution Margin
DSO. Days Sales Outstanding.

I also would want to see the standard balance sheet/cash flow reports. But I am trying to take this from a purely operational point of view. You may not have access to the big picture. You can only control your own environment.

I want to see financials reported by customer. I want to see them reported by team. You will gain knowledge from those two views. We want to know our most profitable customers (not necessarily the customers bringing in the most revenue). I want to know who is COSTING us money. Because we may want to fire them. Gently, of course.

Customer KPIs

I know. I originally said 6 questions. Its 7. Those questions are:

1. Courtesy of the Whomever You Interact With Most Frequently (support person, billing, customer service, field service, delivery person, sales person, account manager, CEO)

2. Skills and Knowledge of Whomever You Interact With Most Frequently

3. Quality of the Resolution

4. Timeliness of the Resolution

5. Overall Experience

6. Additional Feedback – open ended feedback

7. Net Promoter Score. “Would you refer us to someone else?”

Day 1 – every customer gets these questions. Then quarterly. Sometimes monthly. Track results.

Employee KPIs
Two sets of feedback here. Sit down with everyone. One on one. Ask them 3 questions:

1. What are we doing well?
2. What are we doing poorly?
3. If you could fix one thing right now, what would it be?

When you have a good percentage of the people interviewed. Start listing action plans on things we are going to fix. FOLLOW THROUGH. Seriously, if you don’t follow through, just stop reading. Go play Farmville.

The second piece is more formal – quantitative. Employee Satisfaction Surveys. Everyone can groan now. Again…short and simple. 5 questions and a section for feedback. NOT ANONYMOUS. I hate anonymous.

1. In the past seven days, have I received recognition or praise for doing good work?
2. Are my coworkers committed to doing quality work?
3. Do I have a best friend at work?
4. In the past 6 months, has someone at work talked to me about my progress?
5. This past year, have I had the opportunities at work to learn and grow?

Process KPIs/Production

You have to roll up your sleeves and understand what is happening in your operation. Your KPIs will vary here – each team will have a different set of productivity measurements. Sales will have contacts converting to leads and leads converting to sales. Support will have first call closure (number of times a customer has to re-contact you on the same issue). Every unit should be tracking their local version of the company focused numbers: Revenue, Profit, Contribution Margin, ESat, CSat, DSO.

I just watched a show that follows the New York Jets (football) around through Training Camp. The first episode starts out with the head coach, Rex Ryan, listing the teams goals for the season. WIN MORE GAMES THAN ANYONE ELSE. The defense’s goals for the year: WIN MORE GAMES THAN ANYONE ELSE. The special team’s goals for the season: you guessed it. I love the singular KPI. The One Number.

Another handy tool I forgot to mention in the process post is a SWOT analysis. You may even want to bring in someone from the outside to facilitate this activity. I’ve found that bias can certainly creep in. You can steer the analysis to support your theories. Facts and data people. Facts and data.

I hope you have enjoyed this series of posts. It has been very interesting for me to go through this exercise. I am sure I will have reason to edit and modify as time marches on. Please discuss in the comments. Ask questions! I will be happy to take a shot at answering.