If rates are shrinking, look at pricing and make sure your bids include all labor costs on a job. Study the behaviors of your best-performing people.If Revenue Per Hour is growing, recognize and reward your best people and teams. How does revenue per hour compare to changes in personnel? Did turnover or new hires hurt you?.How does this month compare to the highs and lows of the past year? Is this month a minor blip or change in the business model?.What’s your trend? Are you directionally going up, staying the same, or shrinking?.How does your revenue per hour compare to what you thought it should be?.The hidden costs of turnover, non-billable time, and inefficient time are summarized in one number. It shows how well you manage the productivity and resulting profitability of your people. Revenue per hour is one of the most important metrics to watch when you make money on other people's time. Use 40 hours to get total hours paid for salaried and part-time FTEs. Total Hours Paid includes all salaried and hourly employees in addition to both direct and overhead staff. Revenue per hour is the dollar amount of revenue earned for every hour you paid people to work. "Revenue per hour shows how well you are managing the productivity and resulting profitability of your people." What Does It Tell Me? Look at your scorecard each month, reading across each row to track how your people are driving profits in your business. The top row represents revenue, the middle row represents gross profit, and the bottom row represents net income. The left column shows people metrics, and the right column shows company metrics. The six charts are arranged in a specific order on the One-Page Scorecard. Monthly Financial Management: How to Use Your One-Page Scorecard We recommend you look at trends in these charts to measure and compare your company's performance by benchmarking against your budget and company history as well as your peers and competition. So, why have we chosen to include these six charts? These charts work together to reveal how people impact profits and how the results impact your human capital management strategy. The six reports contained in the One-Page Scorecard can help any business that makes money on other people's time (service-based businesses in particular). Our One-Page Scorecard includes the following charts: Understanding which drivers have the greatest impact on your business and knowing how to analyze the financial data related to these drivers will help you optimize performance and productivity to maximize profit. Too much data, however, can be overwhelming and quickly become meaningless. In fact, data can be collected on every aspect of your business and analyzed in nearly infinite ways. There are many different reports, ratios, and KPIs that you can use to understand your business. The six charts that make up your One-Page Scorecard provide a quick and easy monthly look at the relationship between people and profitability in your company. Monthly Management Reports: Why These Six Charts? These quickly "consumable" charts are designed to make it easy to understand, measure, and compare some of the most important drivers of your business. The GrowthForce Company Scorecard, however, makes "knowing your numbers" easy.īy following the six KPI charts included on your scorecard, you'll be able to see the relationship between people and profitability in your company. Often, though, it's not always clear which numbers you should know, how to read them, and what actionable information you can actually glean from your company's financial data.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |