PD Strategies Blog

PD Strategies Blog

Performance and Development Strategies Blog is the informational place to get timely and purposeful articles on the issues that concern you most.

PREDICTIVE ANALYTICS FOR YOUR BUSINESS SUCCESS

Entrepreneur

You already know what happened in the last quarter, but do you know what will happen in the current or next quarter. If you want to have positive results for your business will need to measure and control the things that matter. As a business leader you need to see the big picture. That includes tracking the pulse of your business. Watching a dashboard of controls tells you if your car is operating properly. Having a dashboard for your business will tell you if your business is on track to reaching your goals.

As a leader who is working ON your business you will need to track important trends which can quickly warn of problem areas that need attention. You should not waste time getting bogged down in the small details of working IN the business or you will miss the forest for the trees.

You should measure business success by measuring trends and directions not numbers. Looking at the numbers alone will not tell the entire story. You should be measuring the trends and the movement toward the critical goals of your business.

These are some things that are worth measuring.

Finances – revenues and sales, profits, cash flow

Inventory – unusual drops or increases

People (Employees) – productivity, turnover, employee engagement scores

People (Customers) – customer satisfaction, customer loyalty scores

This information is vitally important to the leader of the business.

Of all the measurements one measurement that is the most important because it is the biggest predictor of future success. It is NOT finance and profit. That may surprise you. Of course, profit is indeed very important but is a measure of what has already happened. It should come with the same warning put on mutual funds which is “This represents past performance, which is no guarantee of future results.” That’s right. Just because you have had good sales and profits last year does not mean that you will have increased sales and profits this year. Sales and profits are TRAILING indicators.

Business Dashboard

A LEADING indicator which will predict future success is customer loyalty or the customer loyalty score. The most important measure of customer loyalty is the answer to this question. “How likely are you to recommend us to your friends?” You should survey your customers with this question along with other customer questions that will help you understand what you need to do to exceed your customers’ expectations. Whatever else you measure make sure that you track this. Rising scores will lead to more sales. In the same manner falling scores will predict decreased sales.

If you measure customer loyalty and see opportunities for improvement take action immediately. Taking the correct steps will help you create more sales, profits, and success.

Learn how to create predictive controls for more business success.

Contact Us for a Free Consultation

or call 914-953-4458.

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REDO YOUR PLAN BUT KEEP YOUR CORE VALUES

Core-Values-Culture
Due to these turbulent times you should be readjusting your business plan. Most business plans begin with a statement of vision, mission, and values. Mission and vision can change as is the case now. However, core values should never change. Values are more important than anything else when selecting team members. You may now need different skills; you may be changing job duties; you may have new protocols; but your values should be cast in stone! If you know your core values and stand behind them, you can change goals and set new direction with confidence. Your values will help you with your WHY. Moreover, your why is much more important than your how. How many businesses can say why they are in business or articulate their basic business foundation? You might be surprised at how few really can. Your core values are of greater importance than vision. These are the...
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HOW DO YOU PREDICT FUTURE SUCCESS?

HOW DO YOU PREDICT FUTURE SUCCESS?
You have finished your strategic plan for next year and created your goals. Now you must implement but how do you know it you are on track for future success? You have had some strong business growth, but that performance is no guarantee of future results. Just because you were successful in the past does not mean you will be successful in the future. I work with business owners in Westchester County New York who define success through their vision, their values, and goals. In addition, they monitor and measure results. You may have heard the expression, “If you can’t measure it you can’t manage it” To begin, you need to have a strategic plan, goals and objectives, and a way to measure your progress. Without these elements you are relying solely on luck. What you measure is just as important as having and plan and executing it. For example, many...
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MAKE 2018 THE BEST YEAR IN YOUR WESTCHESTER NEW YORK BUSINESS

MAKE 2018 THE BEST YEAR IN YOUR WESTCHESTER NEW YORK BUSINESS
We are working with business owners in Westchester County who are working on making their businesses more successful. These businesses define success through their vision, their values, and goals. Then to stay on top of their business they monitor and measure results. Once you set your goals you need to make sure you are on track. You would not take a cross country car trip without using your GPS to make sure you are on track. So similarly, if you want to have a sustainable business you need to have a strategic plan, goals and objectives, and a way to measure your progress. Without these elements you are relying solely on luck. What you measure is just as important as having and plan and executing it. For example, many business owners are familiar with the acronym EBITDA (earnings before interest, taxes, depreciation, and amortization), or more simply said profit. That, however,...
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IF YOU CAN’T MEASURE IT YOU CAN’T MANAGE IT

IF YOU CAN’T MEASURE IT YOU CAN’T MANAGE IT
Another thought this time of year when we are working on our business plans for the next year.   We need to have clear objectives and goals.   You may have heard the expression, “If you can’t measure it you can’t manage it” Well, if you want to have a sustainable business you need to have a strategic plan, which includes those goals and objectives, and a way to measure your progress.   Without these elements you are relying solely on luck. What you measure is just as important as having and plan and executing it.   For example, many business owners are familiar with the acronym EBITDA (earnings before interest, taxes, depreciation, and amortization), or more simply said profit.   That, however, is a measure of what has happened in the past.   It may not predict what will happen in the future. Using measurements that predict whether you are...
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IS EMPLOYEE DISENGAGEMENT HURTING YOUR BUSINESS?

IS EMPLOYEE DISENGAGEMENT HURTING YOUR BUSINESS?
I remember working with a CEO, who when asked the question how many people work here would reply, “Oh about half.” Although that may be a funny wise crack comment, on a serious note the Gallup organization reports that it is only one third. Should you be concerned? The best way to illustrate the cost employee disengagement is with this story. I recently did a similar survey for an organization. This organization provides onsite catering and event services. Their requirements for success are a providing good service, great food, consistency, and a great guest experience. The owner and his son were physically worn out. They were struggling to get more business but having a hard time providing good service to existing customers. Here is why. For starters, father and son disagreed on the operation of the business. Because of this, some key employees chose to align with one family member over...
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IS BEING IN CONTROL PREVENTING YOUR BUSINESS GROWTH?

IS BEING IN CONTROL PREVENTING YOUR BUSINESS GROWTH?
Any smart business owner knows that a business must have adequate controls.  But is being in control preventing your business growth?  Being controlling can prevent your business from growing.  Why are owners so controlling?  The reason is that most businesses are started by people who are very involved in the product or service.  That is natural.  The owner has to spend a lot of time working in the business to make sure that the product or service gets out, the money gets collected, and the bills get paid.  That is very important for business survival.  Here is a problem that comes up all too often.  A business owner or agency owner spends most of his or her time working IN the business and virtually no time working ON the business. Why is this problematic?  When you start your business you need to do everything or it does not get done. Sometimes...
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