Running a restoration company involves overseeing and streamlining a wide range of duties and responsibilities to ensure you’re providing the best services possible, while also positioning the company for future growth. However, unless you are constantly tracking and measuring the right metrics about your company, you might not reach your growth objectives.
“KPIs let restoration companies drill down into their data to determine what is and is not working.”
The best way to track how your organization’s growth is coming along is by using key performance indicators (KPI’s). KPIs provide a framework that owners and managers can use to establish short and long term goals, as well as measure how successful their operations are in reaching these goals. With this structure in place, businesses of all shapes and sizes can more effectively drill down into the granular aspects of the company to find out what is working, what isn’t and where bottlenecks are affecting workflows.
According to the Online Marketing Institute, there are two main factors for determining whether your KPIs are meeting their criteria. First, is the metric properly aligned with your business objectives? Second, are there time-sensitive measures you can track and include deadlines on?
Not tracking or measuring data
With the wide range of technological tools available today, ensuring you establish and effectively measure these KPIs should be easy. Unfortunately, a whopping 70 percent of companies had no system or structure in place for identifying and tracking key metrics, according to a 2016 survey of small and medium businesses in the U.S. conducted by Geckoboard, a digital workplace monitoring organization. Further, of the approximately 30 percent that did measure them, less than half of these companies did so in real time.
Yet, the survey also revealed that business owners who do track and measure their data in real time were two times more likely to achieve the growth they aimed when compared to those companies that did not track metrics consistently. In addition, the survey found that around 50 percent of owners who had real-time data tracking abilities met every single one of their goals in the previous year. Even further, about 92 percent of respondents met some or all of their goals due to the advantages garnered through data tracking. In comparison, only 24 percent of companies that did not track in real time met all their goals, while 64 percent of those that didn’t measure data met all or some of their goals.
“Restorers who are not tracking their KPIs may ultimately be inhibiting their company’s growth.”
“There are so many things that are outside of an entrepreneur’s control, but establishing and tracking key company goals is not one of them,” said Geckoboard CEO and Co-Founder Paul Joyce. “Businesses that don’t learn to follow suit are limiting their chances of growth before they even get properly started. The longer companies wait to define goals and key metrics and then make performance data against them accessible, the less likely their teams will change the outcomes for the business.”
If restorers are not identifying their company’s KPIs and then following through with the actual tracking and measuring of these indicators, it ultimately inhibits growth, which has the potential to stagnate operations and can even lead to a constriction in the business.
As noted by The Business Journals, numbers, combined with a structure, provide the best opportunity to manage your company. But what numbers should you track and what kind of structure should they be tracked from within?
Every company – even those that all operate within the restoration industry – will have different KPIs to track and measure. Bruce Rector, the author of the article, noted that an easy metric to calculate that might have a 5-10 percent probability for a margin of error can potentially be more valuable than a measurement that is extraordinarily difficult to ascertain but 100 percent accurate. Spending too much time on these issues can create more logjams and lower productivity, so a careful balance must be struck between measurements and actual performance.
With VPASS by Next Gear, restoration companies gain the crucial insight into their daily operations necessary for accurately and consistently measuring all KPIs. VPASS, which stands for Value Progression Adjusted Sigma Score, is based on proven Six Sigma methodology.
According to Garret Gray, CEO and President of Next Gear Solutions, “this monitoring approach is unique in that it goes beyond the traditional Time in Process (TIP) scores by tracking nearly all elements of the job that have a time component.”
This dynamic and transparent method for measuring and quantifying overall performance, provide real-time compliance monitoring, allowing you to track and measure these KPIs immediately, without having to wait on the accounting department or sales to crunch numbers and churn out reports sometime down the road.