Key Performance Indicators (KPI’s)

The Challenge – Key Performance Indicators (KPI’s)
Tim’s building company has been through a lot of ups and downs over the past 15 years. Being the proactive guy that he was Tim constantly looked for ways to improve his business, particularly regarding the performance of his team on-site. 12 months previously Tim decided to change the direction of the business and chose renovations as his niche. He set his sights on becoming the Number 1 renovations company in the State and made it the company goal to exceed customer expectations on every job. This was a lofty ideal, which Tim wanted every member of his team subscribe to, to collectively raise the performance standards of the company. Following the launch of the new Vision for Tim’s business there was a significant change in the behaviour and attitude of his team on-site. The efficiency was up, absenteeism was down and everyone worked together like a well-knit team. The outcome resulted in improved profits for individual jobs and the company as a whole. However the success was short lived.

In the space of a few months the newly acquired performance standards started to drop, and his team fell back into their old habits.

This caused Tim untold stress and frustration. He couldn’t for the life of him understand why his team couldn’t apply themselves consistently and maintain the level of performance they’d held for the previous eight weeks. The question running through Tim’s mind was “how can I measure the performance of my team so that I can hold them accountable to the newly assigned performance standard and keep it there?”

The Cause:
Tim lacked a measurement system in place to track the performance of his team or the ‘critical distinctions’ in his business. This gave Tim no way to ‘back stop’ the new performance standards his team achieved. Although Tim directed a lot of his frustration at his team, in fairness to them, they we’re only human and like all people they need accountability, focus, guidance and direction.

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