By Mike Moore
Everyone wants to stand out from the crowd, but it's not necessarily as easy as it sounds. If you were able to catch my talk at Lennox LIVE, you know that outperforming the competition starts with fine-tuning the inner workings of your organization. If you didn't make it out this year, here is some information you'll want to study up on.
The Importance of Departmentalization
To be truly business savvy, you should determine how much you actually know about the departments in your company. Do you know the overhead expenses and profits for each area? What about the sales and cost of sales? If you don't have the answers to these questions, your business probably isn't properly departmentalized. But don't worry - you aren't the only one - more than 85 percent of dealers don't departmentalize. If you want to learn more about how using sectors can improve your business, check out our white paper on departmentalization in the My Learning section of DaveNet®.
Another important piece to the puzzle is measuring your success using key performance indicators, or KPIs. These measurements help you understand how well your company and individual employees are performing against your strategic plans and standard HVAC industry critical success benchmarks. These results help you make fact-based business decisions and create implementable action plans for the future.
As you grow and diversify your business, it's essential that you consistently define, measure, analyze, act upon, and improve your KPIs. Following this ongoing process will help you implement your business plan and customize it to your company, which means you'll have a greater chance at differentiating yourself from the competition.
So how do you decide what to measure? In part two of this discussion, I'll outline five of the most important KPIs to ensure your success this year.