establishing & managing your key performance indicators
TRANSCRIPT
Establishing & Managing Your Key Performance Indicators presented by Rex Frank of Sea-Level Operations
Your Captains Through This Journey
2
Hosted By: Eric Dosal BrightGauge So7ware Co-‐Founder & SMarke@ng
Presented By: Rex Frank Sea-‐Level Opera@ons Founder & President
BrightGauge Resources: Webinar Download
3 3
http://info.brightgauge.com/service-management-excellence
BrightGauge Resources: White Paper
Internal Metrics That Matter for MSPs
4 4
http://info.brightgauge.com/internal-metrics-that-matter-for-msps
Peter Drucker Quotes
5 5
“What gets measured, gets managed”
“Efficiency is doing things right; effec9veness is doing the right things”
Agenda
• Type of Indicators – Leading vs Lagging – Indicators vs KEY Indicators
• Sales KPIs • Finance KPIs • P&L Based KPIs • Service KPIs
6
Type of Indicators
• Leading Indicator – Looking through the Windshield
• Opportunities to close this month
• Lagging Indicator – Looking through the Rear View Mirror
• P&L Report
• Performance Indicator – Engineer Utilization
• Key Performance Indicator – Engineer Margin
7
Sales KPIs
• All In Seat Price - Pica • Number of opportunities with: No $ Value, Past due, No
Campaign, No Type, No Member – Should all be ZERO
8
Sales KPIs Continued
• Number of Marketing Email Sent (Weekly Goal 75) (excluding Newsletters)
• Number of Sales Emails (Weekly Goal 20) (tracked in activities)
• Sales Dials (Weekly Goal 50) (tracked in activities) • MSP Appointments Set (Weekly Goal 2) (tracked in
activities) • MSP Appointments Met (Weekly Goal 2) (tracked in
activities) • MSP Presentations (Weekly Goal 2) (tracked in activities)
9
{NEW} BrightGauge Standard Sales KPIs
Sales Team Productivity • Looking Back…
– Total Sales Activities Completed
– Sales Activities By Sales Rep
• Looking Ahead… – Currently Open Sales
Activities – Sales Activities Scheduled
Next 7 Days
Revenue Production • Looking Back…
– Number of Opportunities Closed
– Total Revenue Closed – Revenue Closed By Sales
Rep
• Looking Ahead… – Open Opps By Rep – Open Opps By Type – Pipeline By Type
10
Finance KPIs
• A/R Days • A/P Days • Invoicing Days • Number of Credit Memos • Cash Flow Ratio • Over/Under Budgets • EBITDA
11
P&L Based KPIs
• Services Labor Loaded Gross Margin % – (Service Revenue – Service CoGS)/Service Revenue – Goal > 65%
• Service Direct Labor as a % of Raw Gross Margin – Service Direct Labor / (Service Revenue – Service Hard Cogs) – Goal < 33%
• Labor Loaded GM$ Produced Per Engineer – (Service GM$ / # of Engineers)
• Ratio of Managed Services Billing to (Non Product CoGS + All Expenses) – Goal > 1.0
12
Must Manage to the Financial Metrics
• You Must Believe 3X is Real and Achievable.
• Use the BIC-O-Meter To Figure Out How To Get the Net Profit You Want
13
Service KPIs
• Service Level Agreement (SLAs) • Tickets Per Endpoint
– Total number of tickets per month / number of managed end points
• Survey Results
14
Service KPIs (cont’d)
• Billed Hours vs Scheduled Hours • Client Satisfaction Trend • Billable Internal Hours • Shady Time (Payroll Wrap) • Pre-sales Hours %
15
Service KPIs (cont’d)
• Dispatch KPIs – Tickets With No Agreement – Tickets Requiring Attention
• No Resource, Past Due, Last Update Timestamp – Tickets Not Acknowledged – Cherry Picking (Working Tickets Out of Order)
16
How can BrightGauge help you achieve your business goals? visit www.brightgauge.com to learn more or drop an email to [email protected]