5 Keys to More Profitable Employees

Your biggest expense should be your biggest asset

Presented by:

Frank Coker, CMC, MBACEOCoreConnex, Inc.Producer of theCorelyticsTM Financial Dashboard

Presented by:

David RussellCEOSuccess With People, Inc.Author ofThe Company Culture Challenge

Is Your Team on the Same Page?

Is Your Team on the Right Page?

Agenda

• Benefits of Getting it Right• The 5 Keys

1. Business model

2. Compensation/incentives

3. Utilization

4. Metrics

5. Roadmap

• Monthly Process• Q&A

Only 20 percent of all employees are fully engaged.

Forty percent are "enrolled," meaning capable but not fully committed, and 40 percent were disenchanted, disengaged.

Companies with the most engaged employees had a 19 percent increase in operating income during the previous year, while those with the lowest levels had a 32 percent decline.

*Towers Perrin study, 2007-2008 90,000 employees in 18 countries

8 Reasons Your Employees Don’t Care Anymore

1. No freedom

2. No targets

3. No sense of mission

4. No clear expectations

5. No input

6. No connection

7. No consistency

8. No future*BNET, 2011

“Someone who is exceptional in their role is not just a little better than someone who is pretty good. They are 100 times better.”

Mark Zuckerberg, CEO, Facebook

*NY Times

Key #1: Business Model

Business model examples• Standardized packages of products and services

– Lower paid technicians following a structured process– More scalable

• Highly customized solutions – Higher paid technicians inventing new solutions to every– Hard to maintain, more problems and higher risk– Less scalable

• Doing both creates confusion especially when staff are used on projects that don’t fit their skill set

How Do You Compare?

Business Model

Benchmarks

LOBs

Goals

Key #2: Compensation/incentives

• Compensation must meet needs, but is not a primary motivator

• Technician and sales staff should earn more based on revenue/profit generated

• Do not limit compensation based on performance

• Keep performance metrics visible or the impact of incentives will be lost

Are You Paying Too Much?

Key #3: UtilizationManagement of: • Technical Team Inventory: Hours

– Solutions development, implementation and support – Define inventory and desired utilization rate– Track all hours of work and revenue per hour

• Sales Team Inventory: Pipeline & Conversion– Maintain current, accurate pipeline– Track conversion rates– Monitor revenue

generated vs. quota

Is Revenue per FTE Right?

Key #4: Metrics

• Staff utilization percentages• Gross margin per line of business• Sales pipeline conversion rates• Revenue per FTE and per billable FTE• Payroll per FTE and per billable FTE• Revenue variation per month

All need to be tracked monthly and trend lines reviewed

What Are Your Metric Trends?

• Align staff – expertise to fit the work• Track data – start early and track

progress• Begin watching industry benchmarks• Begin setting financial goals and make

progress visible to the team• Develop compensation and incentive

plans around metrics

Key #5: Roadmap

Know Your Forecast

Model

Benchmarks

LOBs

Goals

Scenarios

• 30 Minute Monthly Action Plan

Close Books

Upload

Data

Review Leading Indicators

TOP 3ACTION ITEMS

assign ownership

Do You Have a Monthly Process?

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https://dashboard.corelytics.com