Which KPI's do you track?

Discussion in 'Business Operations' started by JoeandTob, Dec 13, 2017.

  1. JoeandTob

    JoeandTob LawnSite Member
    from Iowa
    Messages: 187

    Hi Guys,
    I was curious as to which KPI's you all track in your business, besides the normal Income Statement. Cash Flows, and Balance Sheet. I currently track the following:

    Direct Labor Efficiency Ratio
    Management Efficiency Ratio
    Cost Per Lead, Cost Per New Customer, Conversion Rate

    As you can see, I don't have too many KPI's that I track. I would love to hear from ya'll any others that you track in your businesses!

    matt spinniken likes this.
  2. JoeandTob

    JoeandTob LawnSite Member
    from Iowa
    Messages: 187

  3. Okhydro

    Okhydro LawnSite Member
    Messages: 29

    A lot of software tracks this kind of stuff if you are willing to input the data. The one thing i do is after most jobs i will job cost and see how well i did or didn't do.
    JoeandTob likes this.
  4. JoeandTob

    JoeandTob LawnSite Member
    from Iowa
    Messages: 187

    I am currently using Service Autopilot, but am switching over to Real Green in the next week or so.

    I usually try to break down the LER per job to look at efficiency and whether I priced correctly...
  5. snomaha

    snomaha LawnSite Bronze Member
    from midwest
    Messages: 1,446

    Like what you are tracking - we also use labor efficiency - Crabtree fan for a long time.

    I look at A/R, A/P, bank balance, LOC balance and monthly burn rate weekly/daily. I practice open book management with my leadership team and asked a question the other day about balances in each of these accounts - the most telling answer came from one of production supervisors. He was asked what he thought our bank balance was - his answer was $700,000

    Moral of the story - your employees think you are hauling truck loads of money to the bank every day.
    hort101, JoeandTob and Efficiency like this.
  6. Mitty87

    Mitty87 LawnSite Silver Member
    Messages: 2,296

    What is it only $600,000?
    JoeandTob, Efficiency and snomaha like this.
  7. Efficiency

    Efficiency Banned
    from zone 6
    Messages: 1,854

    Since we are mainly lawn apps, I also track client count, new program sales gross and percentage, ytd cancels gross and percentage, and most importantly to us, production done and remaining in days and dollars.
    JoeandTob likes this.
  8. grassmonkey0311

    grassmonkey0311 LawnSite Gold Member
    Messages: 3,372

    -New customer sign ups
    -Cost per new customer/sales leads
    -Overall customer count
    -Customer cancels
    -Reasons why they cancel
    -Daily and weekly route revenues
    -Since I'm mainly mowing, I track lawns per hour being mowed

    The 3 most important ones for me are *lawns mowed per hour* because this directly impacts the quality of the job the employees do as well as revenue and *customer cancels/reasons why they cancel* because it's a constant battle to improve and see what I can do better.
    JoeandTob likes this.
  9. snomaha

    snomaha LawnSite Bronze Member
    from midwest
    Messages: 1,446

    Production done and remaining days out is one our turf division likes as well. We are lacking in marketing KPI's.
    Efficiency and JoeandTob like this.
  10. JoeandTob

    JoeandTob LawnSite Member
    from Iowa
    Messages: 187

    Thanks for the response Snomaha! I was really hoping you and Efficiency would comment! I am a huge fan of Crabtree. I attended his talk this year at the service autopilot conference a few weeks ago.

    This year, I didn't really share too many numbers with everyone. My manager knew Sales, Production, LER, MLER; Only I knew the BS, Income S, and Cash Flow. I plan to have each employee know these numbers a little better next year...

    Greg mentioned at the conference that a company should close its books on a weekly basis. Does your company do that?

    Do each of your employees know how much each employee makes? If so, do you find that there are problems that arise? Jealousy?

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