I recently shared an article, Top KPIs Service Organizations Should Use For Client Work that talks about how to measure and manage your client based projects. While thinking about great KPIs, I jotted down some of my top KPIs for measuring our business, internally. The internal KPIs used to manage our business are not quite as exciting, yet relate to the client KPIs.
At a high-level these are the internal KPIs we focus on:
- Training days
- Project closure process adherence
- Time entry adherence
Here’s a deeper dive on these top four KPI’s our delivery team focuses on:
1. We track utilization hours (utilization is the time spent on scheduled projects) against billable time at an 80% minimum. We strive for 130+ monthly. PTO, training, internal company meetings and activities fill up the remaining 30-40 hours a month. We are pretty good in our approach, and really try to take care of our employees.
“I like to think of us as a lifestyle company. Don’t get me wrong, we ARE a profitable organization. If you expect your employees to bill 50-60 hours a week, you are going to burn people out and then worry about turn over. We don’t like to be like the airlines and “overbook” seats.”
2. We measure our training, and it’s allocated. I think it’s cool. We are giving everyone a minimum of 3 days of training. What are you interested in? What are you going to get better at? It needs to relate to our daily business. This helps keep everyone fresh. They get so much on the job training because of different products and projects we take on. Probably to an extent that most don’t even realize.
3. Is our team entering their time on time? Are they logging time on a daily basis? It’s important for us to know how we are doing compared to expectations.
4. We have a specific project closure process, and we measure how we do on that process. Projects need to be properly closed out both financially and from a scope standpoint. We then take a moment to document what we learned which is so valuable for others jumping on new projects for the same organization, and for similar projects at elsewhere.
We manage and house all this info using SharePoint. It’s important to consider how the data will be gathered and displayed when thinking about KPI’s and measurements to manage your business.
How are we doing on measurement right now?
I can tell you with certainty that 80% of everything I’ve mentioned is dash-boarded, and we are getting close to measuring at that level on the rest. We are currently running a new set of performance metrics that will be measured monthly, quarterly and annually and will feed the bonus pool. We focus on net income and a high amount of contribution margin for these new metrics. At the end of the day, if we are not making money, we aren’t going to be able to grow.