Here is the deal:
KPI’s can help you grow your accounting practice.
And there are two types you can measure.
1. Lead measures
2. Lag Measures
Let me break down the differences:
Lead measures and action based. Key performance ACTIONS.
Lag measures are the results of the ACTIONs that you have taken. Key performance INDICATORS.
For example:
A lead measure is the number of people you get into your Facebook Group every week, or number of conversations you start with people online.
Whilst a lag measure is the monthly income you generate because of that. Number of sales.
What is really interesting is when you decide to switch your focus to the KPA’s (Actions) and you have more control over hitting the KPI’s. (Which are often sales/retention of clients etc)
So what I would like this email to do is help you think about your focus.
Instead of focusing on getting 3 sales a month for your practice (KPI’s), think about the ACTIONS you can focus on to make that happen.
For example:
If you need 3 clients this month then you probably need to send 5 proposals.
To send 5 proposals you probably need 10-20 sales calls.
To get 20 sales calls you need to have 50 opportunities to create sales calls.
To get those opportunities you need to take take the following ACTIONS:
Post on social media and follow up with anyone who likes and comments on your posts.
Start 25 conversations a day with your connection on LinkedIn/Facebook.
Hold a webinar once a month and invite people into a call
You get the point…
Your KPA’s put you in control of hitting your KPI’s.
And when this happens your revenue goes up and up, predictably. Because you are measuring the right things.
It’s a nice place to be, and gives you great confidence.
