016 Driving Growth with KPIs
Episode description
01:09 – Introducing today’s topic: Driving Growth with KPIs
01:33 – Reinforcing the importance of tracking your critical number
02:28 – Defining the critical number
07:12 – Michael invites listeners to take a moment to reflect on their critical number
07:44 – The factors that influence and drive positive action towards your critical number
11:24 – The importance of financial literacy
13:21 – The Weekly Huddle
15:18 – Sharing the profits
17:54 – The importance of execution
20:13 – Developing KPIs
20:58 – Michael articulates the difference between accountability and responsibility
23:36 – The value in forecasting critical numbers in advance
25:02 – Michael provides examples of leading indicator concepts
26:25 – KPIs, priorities, forecasting and measuring
29:38 – The Five Scoreboards
32:13 – The importance of setting goals that will make organizations stronger
33:27 – Michael teases the topic of the next episode of CEO Brain Food
33:38 – Where to find Michael’s Functional Team Scorecard
TWEETABLE QUOTES
“The critical number provides a focus on what’s most important. And, in fact, it’s the determining factor critical to the company’s success.” (03:35)
“The driver is a number that directly influences the critical number.” (10:55)
“You want your people to be engaged in forecasting the number. You want them to really own that number.” (12:05)
“You want to be sharing with the employees the profit that they help you create, but only after a threshold level of profit is made.” (15:18)
“The critical number is what you want to achieve. The drivers are how it’s going to be achieved.” (17:17)
“When we’re developing the KPIs, first we want to identify the problem to be solved or we want to identify an opportunity that we’re going to leverage.” (20:13)
“Accountability cannot be delegated, but responsibility can.” (20:54)
“What gets measured gets done.” (30:16)
“The critical number provides us a learning opportunity that becomes part of our everyday process of running the business. Everyone in the company should know the critical number.” (33:08)
RESOURCE LINKS
Four Characteristics of a Strong Critical Number
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