Gauging Success


Measuring the success of a business requires constant surveillance of performance. You must understand the business and business performance in detail and maintain a clear perspective on what the business is trying to accomplish at all times. Our branch economic model is fairly well developed. We aspire to earn a 20% operating profit return on sales at the branch level. To ensure an organized and efficient method of reviewing this data, we have broken this performance level down into its components : revenue, job margin percentage, indirect cost percentage, technician utilization level, and SG&A percentage. We report component level performance at least monthly to the branch managers. We also have an enterprise-wide information system that provides our managers with the financial and operational information necessary to manage their business units. This approach helps all managers understand where any shortfall may exist and, therefore, what type of corrective action may be appropriate.




Inside the Minds Stuff - Inside the Minds. Managing for Profit. Leading CEOs on Key Strategies for Increasing Profits Exponentially in Any Economy
Inside the Minds Stuff - Inside the Minds. Managing for Profit. Leading CEOs on Key Strategies for Increasing Profits Exponentially in Any Economy
ISBN: N/A
EAN: N/A
Year: 2004
Pages: 130

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