Archive for the ‘score’ Category
Keep Score to Win in Business
Obtain a gang of businessmen together and the discussion invariably turns to sports. It doesn’t matter what season it is-baseball, basketball, football, hockey, soccer, etc.-someone can invariably rattle off statistics about every player each game. Although of these businessmen (and women) can tell you the stats of their favorite team, few can recite important statistics about their particular company.
Runs, Hits and Errors
To operate a small business effectively, you have to keep score. A lot of companies know who their top salespeople are, but few determine what means they are the very best. What are same in principle as runs, hits and errors? Could be the business measuring not simply EBITDA, but additionally:
Marketing effectiveness (cost per new customer, lost revenue as a result of marketing mistakes)
Sales effectiveness (average sale, repeat sales, etc.)
Purchasing errors (incorrect quantities or items)
Order errors (incorrect quantities or items)
Invoicing errors (incorrect quantities, items, taxes, etc.)
Payment errors (misapplied payments)
Missed commitments (late deliveries)
Credits and adjustments for errors
Delays and defects (errors) cost you a typical business $25 to $40 from every $100 spent. Find and fasten those mistakes and also the profit falls straight away to the bottom line.
Invisible Measurements