Its easy to accept the status quo and measure what you have always measured in your Accountancy firm, your backward facing Key Performance Indicators (internal financial or technical indicators).
However, for the success of your firm it’s important to measure what matters most to your clients.
And it’s also important to measure forward facing indicators – Key Predictive Indicators.
This might seem like a daunting task and if you asked your team what matters most to your clients the list would probably be lengthy…
The secret is to keep it simple – put your all Key Predictive Indicators your onto just one page… and keep it on one page, even if you make changes along the way – keep it simple.
So how do you create a simple ONE PAGE plan for your ENTIRE firm?
Here are a few tips to help you get started…
1) Be clear on the goals of your business, create SMART goals and change them if necessary
2) Work with your team to discover what your client-facing numbers (Predictors) are, then simplify them to what matters the most – remember you only have one page!
3) Work out your sales and marketing predictors – to grow your firm you need new clients – so what are your best marketing KPIs?
4) Work out your cost and cash predictors – there are likely to be one or two big spends within your business – salaries, technology etc. – work these KPIs out – these matter to the successful flow of cash in your firm
5) Work out your key financials – turnover, cash in bank and profits – you already know how important these KPIs are to your firm
6) Track your KPIs at least every month with your team and test, adjust and improve if needed so that they work to grow your firm
Click here to read a case study of how Continental Airlines used SMART goals and a one-page plan to help the profits of their business soar and how this simple yet very successful approach can be applied to your accountancy firm.