DASHBOARD 101
What to focus on?
Over the years I have had staff ask me, “Nathan, what’s the 1 thing that I need to focus on?” To which I have responded, I wish there was only 1 thing that we could focus on. Business would be much simpler if that was the case. However, business is complicated and requires us as owners and managers to be focused on several different aspects of the business.
My top 5 Pillars of Business Success are:
STAFF, CLIENTS, SALES, PROFIT, SAFETY.
We need to focus on all 5 to operate a successful business.
- But how will you know if your business is on track or off track?
- Is there anything that you can measure today that will help you determine where you will end off?
- What leading (vs lagging) metrics or indicators can you use that will help predict cash flow in 6 months, whether you will need to hire more staff in 8 months or if you will have to lay off staff in August or need to invest into sales training.
A Dashboard is an information management tool (excel spreadsheet) that is used to track KPIs, metrics, and other key data points relevant to a business, department, or specific process.
Based on the 5 Pillars of Business Success, here are my top metrics that can appear on your Dashboard:
Clients
Client retention rate
Google Review Score
Staff
Staff retention rates
Sales
Closing Ratio %
Backlog in Days
Actual Revenue to Budgeted Revenue
Profit
Revenue per hour
Unbillable %
Estimated vs actual – hours
Safety
Near Miss reporting
Loss time vs Modified duties
Tips on Dashboards:
- Helps you keep your finger on the pulse – knowing your company’s health is vital
- Keep it simple by using colour indicators (Green, Orange, Red)
- Remember, there are no perfect dashboards as they are always evolving
- Include metrics for all parts of the business (AR to Sales)
If you are looking for assistance in defining your company’s “Pillars of Success” and setting up your dashboard, contact Southbrook Consulting.
