General Inquiries

Metrics and KPI's

  • 1.  Metrics and KPI's

    Posted 12-27-2019 10:18
    I believe in the adage "what gets measured, gets managed"....to that end, what KPI's or metrics are you all monitoring that have proven helpful? I'd like to balance the metrics between leading and lagging.

    Are there new ones you're looking to monitor in 2020? Looking in all areas, and start a process of creating a balanced scorecard approach rather than only using net income or pre-tax income as what defines success.

    Thanks, Matt

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    Matthew Riffe CPA, CGMA
    Vice President & Chief Financial Officer
    Eagle Fire Inc.
    Richmond VA
    (804) 743-2500
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  • 2.  RE: Metrics and KPI's

    Posted 12-27-2019 10:19
    In addition, what resources have you found helpful and pertinent for our industry? I've found some on my own, our insurance and accounting partners have shared some resources...interested in dialing in the metrics that will move the needle.

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    Matthew Riffe CPA, CGMA
    Vice President & Chief Financial Officer
    Eagle Fire Inc.
    Richmond VA
    (804) 743-2500
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  • 3.  RE: Metrics and KPI's

    Posted 01-01-2020 08:57
    We measure many KPI's.  We are a specialty sub with both commercial and residential divisions.  We measure things like:

    1.  #/$ Bids Sent by month (and by rep)
    2.  ​# of inspections
    3.  $ Won / awarded
    4.  $ Invoiced
    5.  Cash collected
    6.  Leads by source (advertising, referrals, business development)

    ​These are posted company wide and discussed weekly with quarterly goals attached.  On top of that we are an EOS/Traction company and we have management scorecards as well as departmental scorecards to keep everyone focused on company-wide goals and moving their piece forward.  Many of the scorecards contain activity based numbers like face to face meetings per month, new contacts made etc.  This has been huge for us.

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    Jill Morrow
    Vice President / Controller
    IntegriBuilt LLC
    Irving TX
    (972) 505-2800
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  • 4.  RE: Metrics and KPI's

    Posted 01-07-2020 09:23
    Edited by Jarrod Klunk 01-07-2020 09:23
    Matt,

    I am also looking for industry-specific KPI's. I'm new to the industry and trying to reduce our data compilation to reports and measurements that we will actually use, not just batches of data and analytics. I will continue to monitor this thread for input.

    Regarding tools, I'm a firm believer in Microsoft Power BI. I've been using this to pull data from various databases (SQL Server, B2W, Salesforce to name a few) and it's much easier than using something like Crystal Reports.

    Jarrod

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    Jarrod Klunk
    Chief Financial Officer
    Conewago Manufacturing, LLC
    Hanover PA
    (717) 632-7722
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  • 5.  RE: Metrics and KPI's

    Posted 01-03-2020 11:14
    Matt,

    Outside the typical, or standard financial KPI's, it's important to measure those activities that ultimately lead to managerial decisions.  Since you've used an adage, I'll throw one out there too, "start with the end in mind".  For me, this means begin with understanding your organization's outcomes.  Outcomes describe the level of performance for your organization.  Then back into the outputs.  Outputs are measurable, or quantitative activities that lead to the performance outcomes.  These are what you'll want to measure in terms of your analytics.  There are plenty of other activities within the organization, but you'll want to start with the focus on those 'performance outcomes'.  Otherwise, you just drown in data and analytics, which leads to frustration.

    A couple people I recommend reaching out to:

    Bruce Orr
    Chief Data Scientist
    ProNovos
    bruce.orr@pronovos.com
    678-908-0087

    Bryce Wisan, CPA
    Partner
    Eide Bailly
    bwisan@eidebailly.com
    702-726-6215

    Both are highly engaged in helping their clients do the same thing you are considering.  They might be able to provide some great advice.

    Good luck,

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    John Killingsworth Ph.D.
    Assistant Professor
    Colorado State University
    Fort Collins CO
    (715) 308-1167
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  • 6.  RE: Metrics and KPI's

    Posted 01-24-2020 10:34
    Thank you!

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    Matthew Riffe CPA, CGMA
    Vice President & Chief Financial Officer
    Eagle Fire Inc.
    Richmond VA
    (804) 743-2500
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  • 7.  RE: Metrics and KPI's

    Posted 01-24-2020 10:38
    I like the idea of having a management scorecard that keeps everyone focused on company wide goals.

    Specially around working capital and backlog, what measurements are you all monitoring to keep a pulse on the health of projects, and cash flow as a whole?

    What I'd like to develop for working capital is a framework or guardrails so we know "how much is enough" and conversely if we are too low.

    Thanks!

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    Matthew Riffe CPA, CGMA
    Vice President & Chief Financial Officer
    Eagle Fire Inc.
    Richmond VA
    (804) 743-2500
    ------------------------------