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Goal Setting for RESULTS

Best practices based on the direct observations

of thousands of RESULTS.com client firms

Presenter: Stephen Lynch

Role: Head of Strategy & Consulting at RESULTS.com

Email: [email protected]

Linkedin: linkedin.com/in/stephengeoffreylynch

Slides: results.com/slides

Software Demo: results.com/insurance

“However beautiful the strategy, you should occasionally

look at the results”

“However beautiful the strategy, you should occasionally

look at the results”

RED = Unacceptable performance standard

YELLOW = Watch closely. Problem?

GREEN = Target performance standard

Questions / Answers:

#realKPIs || @RESULTSdotcom

Tracking Metrics / Key Performance Indicators

RED = Project off track. Will miss deadline

YELLOW = Project needs help. Problem?

GREEN = Project on track



Tracking Strategic Projects

In the past, we used Spreadsheets

Now we use software

Everyone knows their individual accountabilities

We can see how other teams are performing

Drive the execution of Projects & Tasks

We can see how other teams are performing

We can see who is, and who is NOT performing

What’s happening here?

“92% of companies don’t measure KPIs”

92% of companies don’t measure KPIs [3]

Create

leads

Convert leads

into sales

Provide

product-service

Delight

customers

Grow cash

make profit

Questions to identify your KPIs

1. What are the key functional areas of my business?

2. What result or outcome am I looking for in each area?

3. What “activities” or “actions” drive this outcome?

4. What “effectiveness” measures let me know how well

these activities are being performed?

# phone conversations

# appointments booked

# proposals submitted

# policies issued

% appointments conducted

% submissions approved

$ average API

Aim for the stars, even if you miss…

you’ll still reach the moon

Create

leads

Convert leads

into sales

Provide

product-service

Delight

customers

Grow cash

make profit

KPI Questions

What result or outcome are you looking for?

What “activities” or “actions” drive this outcome?

What “effectiveness” measures let you know how well these

activities are being performed?

Functional Area

Team / Functional Area name = MARKETING (Create Leads)

Performance Thresholds

KPI Description Person

Accountable

Measurement Frequency RED GREEN

Functional Area

Team / Functional Area name = MARKETING (Create Leads)



Accountable


New Customer Phone Conversations Week 8 12

New Customer Appointments Booked Week 3 6

Influencer Meetings Week 0 1



Single Point Accountability

Functional Area

Team / Functional Area name = SALES (Convert Leads to Clients)



Accountable


Functional Area

Team / Functional Area name = SALES (Convert Leads to Clients)



Accountable


New Customer Appointments Held Week 1 4

Submissions Week 1 3

Appt / Submission Conversion MTD Week 70% 80%

Issued Policies Week 0 2

Average API per policy Week $1200 $1500

Functional Area

Team / Functional Area name = OPERATIONS (Provide Service)



Accountable


Functional Area

Team / Functional Area name = OPERATIONS (Provide Service)



Accountable


Existing customer phone conversations Week 10 15

Existing customer appointments Week 0 2

Lapsed Policies MTD Week 3 1

Referrals MTD Week 2 4

Functional Area

Team / Functional Area name = FINANCE (Grow Cash + Profits)



Accountable


Functional Area

Team / Functional Area name = FINANCE (Grow Cash + Profits)



Accountable


Daily Cash balance Day $ $

Revenue MTD Day $ $

Monthly Net Profit % Month % %

- You are on an extended holiday in the tropics….

- All you can receive is a weekly email that contains a small handful of

numbers (5 max) that tell you how well your business is performing - If the KPI’s are “green” you can go back to reading your book

- If the KPI’s are “yellow” you need to ring the office to see what is going on

- If the KPI’s are “red” you need to cut your holiday short and return home

- What are the “critical success factors” for your business?

Imagine this…

Business Model - Critical Success Factors

(example)

Industry Type = (e.g. Insurance Advisor)



Accountable


New Client Appointments Week 1 4

Submissions Week 1 3

Appt / Submission conversion rate MTD Week 70% 80%

Issued Policies Week 0 2

Average Annual Premium Income per policy Week $1200 $1500

In “The Red”?

What’s happening here?

What 1 thing can we do this week to

improve this?

What support do you need?

Accountability is meaningless without consequences

What positive consequences can a person expect if their KPI is consistently in the “GREEN”?

What negative consequences can a person expect if their KPI is consistently in the “RED”:

• For 1 month? • For 2 months in a row? • For 3 months in a row?

“Leaders owe it to the organization & their fellow workers

not to tolerate non-performing people in important jobs”

KPI performance thresholds

Be conservative in the beginning

Get everyone used to “winning”

You can always raise the bar later

Goal Setting & Accountability – Getting it Right

Growth inhibited by:

- Wrong person in the role - Wrong Metrics / KPIs - Too many Goals - Unrealistic performance thresholds - Not keeping Goals and Tasks current and visible every week - Not running weekly team and 1-on-1 meetings to discuss results - Not holding each person firmly accountable for performance - No consequences for poor performance - Waiting too long to address poor performance

Growth maximized by:

- Right person in the role - Right Metrics / KPIs - Realistic “green” performance thresholds – adjusted regularly - Goals and Tasks kept current and visible every week - Weekly team and 1-on-1 meetings to discuss results - Each person held firmly accountable for performance - Good performance and progress praised and recognized - Poor performance discussed every week and addressed promptly

★ KPIs drive “business as usual” (your current operating model) ★ Don’t just track outcomes or currency measures ★ Focus on activity & effectiveness measures that drive outcomes ★Make performance visible on a dashboard ★Weekly team and 1 on 1 meetings to discuss performance ★ Good performance praise and recognize ★ Poor performance discuss every week, “What’s happening here?” ★ Shame is not a motivator. Beware setting thresholds too high ★ Be conservative in beginning. Get everyone used to winning ★ Ratchet up performance threshold over time ★ Adjust thresholds every quarter to ensure relevance

Metrics / KPIs - best practices

10 Benefits of Software Dashboards

1. Radical Transparency - motivates action 2. Everyone can see what’s going on 3. Keeps people focused on critical success factors 4. Communicates “what” needs to be done 5. Delegate authority to staff to figure out “how” 6. Recognize progress when things going well 7. Early warning indicator when things going wrong 8. More effective meetings to drive accountability 9. Objective decision making based on data 10. Drives business execution and RESULTS

Thank you for your time!

Goal Setting for RESULTS

Best practices based on the direct observations

of thousands of RESULTS.com client firms

Presenter: Stephen Lynch

Role: Head of Strategy & Consulting at RESULTS.com

Email: [email protected]

Linkedin: linkedin.com/in/stephengeoffreylynch

Slides: results.com/slides

Software Demo: results.com/insurance