How Setting Goals Improves Your Revenue

By Mike Moore

We all want to improve our revenue and outperform the competition - but have you set the right goals to accomplish just that? Earlier this year at Lennox LIVE, I spoke about the importance of goal-setting, so if you weren't able to make it, here's how to implement goal-setting in your organization to make your business stand out and succeed.

Setting goals starts with creating a strategic plan for your business. What is it that you want to accomplish? Where are the weak spots that need improvement? Here's where key performance indicators, or KPIs, come into play. KPIs help you get a real understanding of your company's and your employees' performance by measuring results and comparing them to industry benchmarks for success. KPIs must be defined, measured, analyzed, acted upon, and improved upon.

Five of the most important KPIs to use in measuring your business' performance are:

  1. Revenue per employee
  2. Retail sales
  3. Revenue per service vehicle
  4. Installation revenue
  5. Maintenance agreements

Once you've calculated and determined your performance for each of these KPIs, the next step is setting goals.

For each KPI that needs improvement, develop several goals and create a detailed action plan that encompasses what you and your team need to do on a daily, weekly, monthly, and annual basis in order to achieve those goals. It's beneficial to break things up into short- and long-term outlooks, as well as individual and team perspectives.

Additionally, be detailed in the "hows" of your plan - how are you going to accomplish these things? Whether it's through training classes or other opportunities, write it down and put it somewhere it will be seen and stay top of mind.

The final step is to continuously measure, analyze, and repeat. Track your progress as you go and evaluate it on a regular basis to ensure you're on the path to success. With your goals always in mind and a step-by-step plan for how to achieve them, your business will see growth and improvement in both culture and revenue.

Learn how to improve profitability through the use of these KPIs and increased management team accountability by enrolling in our Operations Accountability workshop, led by Lennox Business Coach Gary Oetker. Plus, find more tips on our Twitter, Google+, and Facebook pages, and check out our HVAC video tutorials on YouTube.

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