In a previous columns, I shared some of how John Gagliano carefully tracked key performance indicators (KPIs) to build Collex Collision Experts to more than a dozen locations before selling the business in 2014 for about $45 million. Here’s more of what John recently told me about how he used KPIs to make that happen.
Use KPIs to pinpoint customer service issues. One of the stats John said he kept an eye on for each of his company’s locations was the net promoter score: how likely customers are to evangelize for your business. When you see that dipping, he said, you’ve spotted an issue you need to go in and fix.
“Our stores knew if they had a customer complaint, they had 24 hours to resolve it with that customer,” John said. “If it wasn’t resolved within 24 hours, then the area manager would get involved and call that customer and fix it at that point.”
Use KPIs to give your managers the information they need. Company owners or top-level management aren’t the only ones who benefit from easily-accessible, real-time KPI data. Staff at each Collex location had a dashboard with the numbers they needed to meet that shop’s goals, John said.
“Let's say the goal for that shop is 2,000 production hours for the month, which broke down to 100 per day,” John said. “If at some point they fell behind, and were only at 75 instead of 100, that cell in the onscreen dashboard would turn red. So it was real easy to train the staff, because basically we would ask them to just look at the dashboard that popped up in front of them every day when they logged in. If they saw something in red, they knew to go directly to that. In this case, they’d see when they put the key in the door that morning, they were already behind. Something needed to happen if they wanted to change that.”
That location’s regional manager could also see that red cell, John said, and could check up as needed with that store manager to ask how they plan to catch up.