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Wednesday, August 09, 2006

Performance Metrics and Getting a PNL Statement for Analysis

You need to spend a lot of energy tracking performance metrics, particularly with networking. Computer consultants often know they should track specific performance metrics but lack an organized system for carrying out the process.

A good method for tracking performance methods is Profit and Loss. When you set up a PNL statement you can use performance networks, defined clearly to track the performance payback from each organization.

STEPS FOR PNL AND NETWORKING PERFORMANCE METRICS

First set up a statement for each of the organizations to which you belong. On one side, track the expenses:

1. Record dates and meetings or events you attend.

2. Record time and money spent on each event.

3. Track how many new types of contacts were made.

4. Display which existing contacts were deepened.

5. Record the number of people you met again for the second, third or other time, shook hands, talked briefly and made yourself known again.

On the other side, track and record the paybacks:

1. Record the date and name of qualified leads you added to prospects.

2. Display the name of the meetings or event where you made the contact.

3. Record service revenue received from the contact.

4. Show the service revenue you got as a direct referral from the specific contact.

Once you start to record the main performance metrics over approximately three to six months you can start to analyze them. Tracking performance metrics for a decent amount of time will allow you to complete a sales cycle and see some definite trends. Sometimes the process will take even longer if the prospect is stubborn or the sales cycle takes a bit longer. Key performance metrics are designed to give you a representative idea of exactly what is happening, so you can’t afford to cut off analysis before it’s time and drop and organization that might be a perfect fit.

Blogged By: Computer Consulting 101