What are KPIs I hear you ask?
They are the keys to ensuring that the business focuses on watching the critical gauges.
Downtime and Under Utilising Capacity Are Clear Drains on Profitability
If machines are standing idle, you are missing out on the chance to make money.
If your people are standing idle, you are losing $$ through lack of productivity.
Offline faulty machines represent a drain to your business.
Unhealthy people, off work due to sickness reduces their ability to generate revenues. Both reduce the profits and margins for your business. Measuring the extent of the drain is important. If you know how much downtime occurred this week, you are on your way to reducing it.
Any business wants to minimise non-productive time.
While machine downtime is traditionally associated with manufacturing. The concept of inefficiency applies to all business types. Inefficiency can be due to idling by people, machines and processes.
KPI’s measuring downtime or capacity utilisation or lack of productivity are useful. They are the keys to ensuring that the business focuses on watching the critical gauges.
You must ensure that the business is executing strategies to improving these KPI’s. The target for KPI’s in this area should be zero or as close to that as possible.
Here are 8 reasons why productivity from your team members may suffer:
1. They lack seeing the big picture view.
2. Poor supervision
3. Poor communication
4. Lack of delegation
5. Inconsistency
6. Inappropriate behaviour
7. Poor use of technology and software systems
8. Inadequate training
How Do I Know This?
Like you, I’ve been in the driver seat of a business, and found myself spinning wheels and struggling to manage people. The fear nearly killed me, and I burned out before I decided enough was enough.
Working with business owners as a Business Coach today, it never ceases to amaze me how much pain business owners are willing to endure before facing their fears and making a shift.
A key step in your business journey is to have a strong grasp on your financial situation.
You can read more about my journey from legal professional, to business owner, to #1 Business Coach here:
