PCOC - Summer 2016 - 9
This may shock you, but we operate
as a team at my company, and we track
everything we can think of. We make scoreboards available for our team, including
our financial performance, balance sheets,
P&L statements, cash flow statements, tax
status, and all sorts of business reports.
We announce our loan balance for what
we owe on our vehicles and how much our
monthly payments are. If we borrow money,
we explain why it was borrowed, how much
it was, and the amount of payments. We
made a large tax payment on April 18 this
year, and I told the team how much profit we
made for the year and how much we were
paying for state and federal income taxes.
We shared our predictions for how much
profit we were planning to generate for the
quarter and for the end of 2016.
Sharing numbers and telling the business
story behind the numbers can help keep a
team engaged in what you are doing and why.
There are no employees at our company.
Instead, we have 45 teammates.
Part 1: Measuring the
Performance of Field Staff
Below is a breakdown of our typical measurements for individual technicians, which
are reviewed weekly with each teammate.
The performance per week is totaled through
the end of the quarter. We review the individual's pay and bonus level quarterly in a
* The number of stops - no matter how
many services were done at the stop. If you
arrived to a property and did something,
that is a stop
* Total production, dollar value of the work
completed for the week
* Average hours at the job (We use a handheld computer to clock in to start a service
or at the arrival at the property, and we
clock out right before we drive off. This
step catches people who hurry too much
and can be compared to the Garmin statistics to check the honesty of the reporting.)
* The miles per stop, which displays the
efficiency of routing (the total mileage for
the week divided by the number of stops;
all miles on the vehicle count)
* The dollars generated per mile driven
(shows us the efficiency of routing; reflects
* Route cancellations, regardless of reason
(We measure the number and the dollars
of recurring revenue lost. Technicians are
allowed to try to save or win back the lost
* Hours of vacation or other time off during
the work week
* Autopay added (when a customer starts
allowing us to take out the fees automatically from a checking account or set up
recurring payments on a credit card)
* Paperless billing setups (billing customers
via email instead of snail mail)
* Recurring revenue sales made (we
add the annual value of the recurring
* New customer sales (new names and
* Upgrades and upsells to existing customers (added new services to current
Weekly, the whole team is advised about
what is necessary in order to meet the
monthly and quarterly goals for production
and growth of our recurring revenue. Team
members are shown how they are doing compared to their weekly, monthly and quarterly
contribution to the company goals.
What Overall Company-Wide Numbers
Should the Company Measure Weekly?
For our company numbers, we maintain
a target and compare the results at our regularly scheduled weekly leadership team
meeting. All of the numbers reflected in this
list are company-wide.
* Growth in recurring revenue (new after
loss and gain)
* Total recurring revenue as of this period
* Total of work produced
* New sales total
* New sales acquired and implemented this
week (initial treatments performed; other
work completed that was a new sale)
* Receipts (we deposited this money in
What are Some Financial
Measurements You Should
Highlight with the Team?
Remember that the purpose of a business,
to a great degree, is to generate cash flow.
* Review your profit & loss statement
monthly for the month just ended and
compare to the same month last year.
Make sure your numbers are improving.
* Review your profit & loss statement for
the running 12 months ending last month.
Compare to the same time period last year.
Make sure the numbers are improving.
www.pcoc.org / Summer 2016
* Run a Statement of Cash Flow for the
month and for the 12 months ending last
month, and compare both to the same
period a year ago. Make sure the trend is
upward for the good numbers.
* Revenue average per employee (total
money deposited for the period divided
by the total number of full-time equivalent
people at the company). We do this based
on a running 12-month period.
* Revenue average per field asset (total
techs or people in service vehicles
compared to the money they generated
* Measure working capital: How fast do
you pay your bills? How much money
do your customers owe you? On average,
how long does it take for you to get paid?
How much cash do you have in reserve,
just in case? How fast do you turn your
inventory? It can be detrimental to your
company if you have too much product
on your shelves and you cannot make
* Return on investment is important. Why
the owner has all his or her wealth tied
up in this business is based on the return
on that investment. Make sure that the
shareholders (owners) are happy with the
money the company generates.
* Make sure your retained earnings are
If any of your measurements are not what
you want them to be, begin working on them.
Make a plan and involve others. Get advice.
We find that the aforementioned numbers
generally matter for pest management professionals. Of course, these change based on
individual circumstances and what interval
you are dealing with. Imagine how differently you would view measures if you
were a one-man operator compared to a
Jeff Annis is a trainer
at Camp BugStopper,
which performs training
that is designed to help
great pest management
great business people.
For more information, go to www.facebook.
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