Do you have a company culture that promotes and encourages an obligation on behalf of every team member to be willing to accept responsibility and be held accountable for their actions? Your honest answer to this question may make you feel really good about the status of your company culture, or it may lead to some real soul searching.
You have completed your budge and it’s loaded in your spreadsheets or business software. You have your key performance indicators set and your goal boards are lined and ready to go. So you’re all set, right? Not so fast. Your success will be short lived if you can’t hold your team accountable to all the tasks at hand. For many owners and managers, the toughest part of managing the business is holding their team accountable to the processes and expectations that have been established, while keeping a positive and motivating work environment. This business is hard enough without having to micromanage by constantly having to discipline non-performers and keeping the naysayers in check.
Your team needs to realize that the processes and procedures that you have put into place are not to make their job more difficult, but rather to ensure their success and the success of the business. Also, they need to understand that you aren’t lying awake at night thinking of ways to make their lives miserable. It’s important for them to know what is expected with respect to actual performance versus your budget plan.
So, who is accountable for what and how does it all tie together? Everyone on your team, whether they are your employees or companies that you outsource services to, needs to know your expectations of them. They should understand how and when you intend to measure their performance and what metrics you will be using. And further, your team should understand that the results are linked to positive or negative consequences that are clearly defined.
Let’s break it down into a sequence of events in a contracting business and look at who you should be holding accountable for what and what should be measured:
- Putting Calls on the Board
- Responsible team members: Marketing, CSRs and techs generating leads
- Measure and hold accountable for: Response rates, call to close ratios, leads set per opportunity
- Production on Calls
- Responsible team members: Installers, maintenance techs, service techs, salespeople
- Measure and hold accountable for: Warranty call backs, average tickets, service agreements, close rates, replacement leads, accessory, and IAQ sales
- Documenting the Call
- Responsible team members: Administrative staff and accounting staff
- Measure and hold accountable for: Replenishing supplies and paperwork, accurately entering data from the calls, invoice close out, reporting numbers accurately and promptly
- Quality Control
- Responsible team members: CSRs, Service/Install Managers and General Managers
- Measure and hold accountable for: Follow-up happy calls and drive-bys documenting customer satisfaction and concerns, reputation management
- Responsible team members: Accounting, accounts receivable/payable
- Measure and hold accountable for: Cash reports and P&Ls promptly & accurately, budget versus actual on key performance indicators, revenue and expenses
Meet with your team members regularly in group settings and one on one to set goals, expectations, and to evaluate their performance as compared to your key performance indicators and your budget. Keep an eye on these numbers daily so you can make proactive adjustments and corrections in real time, rather than being reactive at the end of a month or quarter. Accurate reporting of these numbers will also show you where training opportunities are needed and when to reward people for great performance. It’s not just the producers that need to be measured and held accountable for results. All of these segments of your business will work together like cogs in a gearwheel to enable things to run smoothly, accurately, and profitably!
Again, it is crucial that everyone on your team understands your expectations, how they are being measured, and how important their role is in supporting the other segments of the business. If not, there’s always the risk that assignments in your company will get accomplished like this:
“You may have heard the story of four people named Everybody, Somebody, Anybody, and Nobody. There was an important job to be done and Everybody was asked to do it. Everybody was sure Somebody would do it. Anybody could have done it, but Nobody did it. Somebody got angry about that because it was Everybody’s job. Everybody thought Anybody could do it, but Nobody realized that Everybody wouldn’t do it. It ended that Everybody blamed Somebody when Nobody did what Anybody could have done.”
“That which is measured improves. That which is measured and reported improves exponentially.” -Karl Pearson
Service Roundtable is dedicated to growing your bottom line and helping your business maximize its full potential. These group of contractors work together to assist you with marketing, sales, business, and so much more. Twice a month, seminars around the United States and Canada are held to network and further assist your business. Visit Service Roundtable.com to see if there are Success Days in your area!