Post on 16-Dec-2014
description
5 Keys to More Profitable Employees
Your biggest expense should be your biggest asset
Presented by:
Frank Coker, CMC, MBACEOCoreConnex, Inc.Producer of theCorelyticsTM Financial Dashboard
Presented by:
David RussellCEOSuccess With People, Inc.Author ofThe Company Culture Challenge
Is Your Team on the Same Page?
Is Your Team on the Right Page?
Agenda
• Benefits of Getting it Right• The 5 Keys
1. Business model
2. Compensation/incentives
3. Utilization
4. Metrics
5. Roadmap
• Monthly Process• Q&A
Only 20 percent of all employees are fully engaged.
Forty percent are "enrolled," meaning capable but not fully committed, and 40 percent were disenchanted, disengaged.
Companies with the most engaged employees had a 19 percent increase in operating income during the previous year, while those with the lowest levels had a 32 percent decline.
*Towers Perrin study, 2007-2008 90,000 employees in 18 countries
8 Reasons Your Employees Don’t Care Anymore
1. No freedom
2. No targets
3. No sense of mission
4. No clear expectations
5. No input
6. No connection
7. No consistency
8. No future*BNET, 2011
“Someone who is exceptional in their role is not just a little better than someone who is pretty good. They are 100 times better.”
Mark Zuckerberg, CEO, Facebook
*NY Times
Key #1: Business Model
Business model examples• Standardized packages of products and services
– Lower paid technicians following a structured process– More scalable
• Highly customized solutions – Higher paid technicians inventing new solutions to every– Hard to maintain, more problems and higher risk– Less scalable
• Doing both creates confusion especially when staff are used on projects that don’t fit their skill set
How Do You Compare?
Business Model
Benchmarks
LOBs
Goals
Key #2: Compensation/incentives
• Compensation must meet needs, but is not a primary motivator
• Technician and sales staff should earn more based on revenue/profit generated
• Do not limit compensation based on performance
• Keep performance metrics visible or the impact of incentives will be lost
Are You Paying Too Much?
Key #3: UtilizationManagement of: • Technical Team Inventory: Hours
– Solutions development, implementation and support – Define inventory and desired utilization rate– Track all hours of work and revenue per hour
• Sales Team Inventory: Pipeline & Conversion– Maintain current, accurate pipeline– Track conversion rates– Monitor revenue
generated vs. quota
Is Revenue per FTE Right?
Key #4: Metrics
• Staff utilization percentages• Gross margin per line of business• Sales pipeline conversion rates• Revenue per FTE and per billable FTE• Payroll per FTE and per billable FTE• Revenue variation per month
All need to be tracked monthly and trend lines reviewed
What Are Your Metric Trends?
• Align staff – expertise to fit the work• Track data – start early and track
progress• Begin watching industry benchmarks• Begin setting financial goals and make
progress visible to the team• Develop compensation and incentive
plans around metrics
Key #5: Roadmap
Know Your Forecast
Model
Benchmarks
LOBs
Goals
Scenarios
• 30 Minute Monthly Action Plan
Close Books
Upload
Data
Review Leading Indicators
TOP 3ACTION ITEMS
assign ownership
Do You Have a Monthly Process?
Learn More
https://dashboard.corelytics.com