Six Figure Management Method: How to Grow Your Business with the Only 6 KPIs You'll Ever Need (Patrick M. Georges, 2013)

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  • Management cockpit - SAP on performance guidelines
  • Sales from new sources
    • Innovation (climb rate indicator)
    • New sales acquired from a new partnership
    • New sources: products, customers, processes, partnership, technology, channels, capital, activities, suppliers, innovative ventures
    • Improve profit: high-margin products, high-margin customers, high-margin channels
    • Boost innovation: increase investment in product development, customer development and new technologies
  • Time facing customers
    • Customers’ satisfaction (Heading indicator)
    • Increase time spent with customers or investors
    • Prospect, suspects, internal customers, suppliers, partners, your boss
    • Improve profit: increase time and sales rep facing most profitable customers
    • Boost innovation: increase sales rep, hours and dedication to the most innovative customer to collect ideas
  • Gains from processes
    • Operational excellence (Power indicator)
    • Implementing new software systems
    • Activities turned into processes, process, outsourcing, delocalisation, automation, streamlining
    • Overhaul supply chain process, reduce low-added-value tasks, ranking tasks / customers / suppliers by order of profitability, a two-hour team exercise, experts’ debriefing, outsourcing, service level agreements, offshoring, just-in-time delivery, enterprise resource planning solutions, extranet involving suppliers and customers, bringing the front office to the fore, improving your flexibility indexes
    • Improve profit: improve streamline index, subcontract, delocalise, digitalise more activities
    • Boost innovation: reallocate the gain cost to new projects and streamline innovation process
  • People responsibility level
    • People motivation (Attitude indicator)
    • Increase variable compensation
    • More autonomy for high-potential employees, more accountability for the best employees, more budget allocation for top performers
    • Micromanagement will cause diminution (a reduction in the size, extent, or importance)
    • Redesign jobs, include measurability in job descriptions, replace team budgets with team business plans, subsidiarity
    • Improve profit: allocate more budget to the most cost-conscious employee
    • Boost innovation: allocate more budget to the most inventive employee
  • Return on critical resource
    • Profitability (Speed indicator)
    • Increase returns on the most costly capital by 3%
    • Professionals, cash, capital, locations
    • Indicators: profitability per activity, brand value indicators, cost of goods sold, social profitability, return on resources employed, gain per profit centre, return on your rights, critical resource occupation rates
    • Improve profit: increase the utilisation rate of your most expensive resource
    • Boost innovation: calculate and improve your return on R&D spending
  • Key project status
    • Leadership (Turn coordination indicator)
    • Next deliverables on time and on specifications
    • Delivery on time, delivery on specification, product staffing status
    • Quarterly deviations, project schedule deviation, project budget deviation, earned value management, the availability of key actors, the project indicators
    • Improvements: concentrate entirely on your key project and delegate the rest, rigorously fill in the master project document before launching the project, use adapted project management software, secure all the necessary resources that you may need for your project, name a fill-time project manager, increase the visibility of your project
    • Improve profit: engage a major cost leadership project
    • Boost innovation: engage a major change project
    • Control based KPI approach - operational control, financial control, strategic control, effective control
    • More information is less intelligence
    • Balanced Scorecard (BSC) consulting method - finance, commercial, processes, growth
    • To begin: decide on the management orientation > rank your six KPIs > select a measure > engage corrective actions
  • Customers first: TFC first > more sales reps facing high-return customers > segment customers & hire new sales reps


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