Facebook-Tracking-Pixel
Limited Time Offer! Schedule your FREE business coaching session and scale your business smarter & easier! Reserve My Spot

Success! Your account information has been updated.

close icon

This episode is a business coaching course that teaches how to define KPIs.

Results-Focused Training, Tools, and Workshops from Expert Business Coaches.

Featured Coaching Excerpt - Notes & Transcript, Part 1
  • Lesson Nugget: 4. Define your daily KPIs.
  • Ask Yourself: How many people per day do I need to call to set up an appointment for donating?
  • Ask Yourself: How many people per day do I need to meet with to talk about donating?
  • Ask Yourself: How much money per day do I need to bring in?
  • Ask Yourself: How many people per day do I want interact with and help?
  • Ask Yourself: How will I measure success?
  • Fun Factoid: The Bill & Melinda Gates Foundation is the world’s largest charitable foundation. They Also: 1. Provide the poor with access to financial tools. 2. Teach farmers how to increase production sustainably. 3. Help women make informed family-planning decisions. 4. Increase students' college completion rates. Current number of foundation employees: 1,376 Foundation Trust Endowment: $39.6 billion (2) Total grant payments since inception (through Q4 2015): $36.7 billion Total 2015 Direct Grantee Support: $4.2 billion Total 2014 Direct Grantee Support: $3.9 billion
    (http://www.gatesfoundation.org)
  • Boom:
  • Lesson Nugget: 5. Attempt to sell it.
  • Feelin It Like A Petting Zoo:
  • Story Time:
  • Lesson Nugget: 6. Measure the results and rejections you get.
  • Lesson Nugget: You only measure what you treasure!
  • Ample Example:
  • Dive On In:
  • Jump On In:
  • Lesson Nugget: You cannot measure results for anything until you first create it.
  • Lesson Nugget: 1. Define 2. Act 3. Measure 4. Refine

- Okay, so first thing, define your "why." Second thing, define "profit per customer." Third thing, define how many customers you need to achieve your "why." And then the fourth thing is define your daily KPI's, Key Performance Indicators, daily. - I want to walk you through this. And this is the part that, you'll see this with Thrive more. And it's kind of fun because Marshall used to work with us back in a different business. And then he came back after school and we've teamed up on some stuff. And you've never seen this side of Thrive as much, where as like an elephant in the room, you'd probably see it. But an elephant in the room, I know the key performance indicators. So example, if you work in the front desk, I know, let's say that you're the front desk guy, I know what your percentage of conversion is. So what percentage of customers do you sell a membership? - Sure. - And I know how many customers you see a day. And that's all I care about. What's your conversion percentage and how many do you see a day? That's the only performance indicators I would ever call you and ask you about if you're a front desk person. Just two. And Gino Wickman, his book Traction talks about this. You don't want to give people 75 key performance indicators. The book Scale, Hoffman talks about it. You just want to give someone two, two. So Marshall, you're the front desk guy. I need to know how many customers came in today and how many did you sign up for a membership? That's all I want to know. That's it. - So, I know a lot of our Thrivers they operate a sales call center or they manage salespeople. In your experience managing those things, what would be some good key performance indicators for managing a call center? - Call center you might have three or four. How many outbound calls did each rep make? How many outbound calls did each rep make? The representative. -Outbound calls? - Outbound calls. -Not inbound calls? - That's right. Second, how many appointments did you set up? How many appointments did the rep set up? Then the third would be how many people paid you? And then the fourth would maybe be what were the number one objections you ran into? Something like that. But the problem is when you start an organization, this is the part about Thrive that you've seen that makes me insane, I hate it, I just hate it. That's why I hate startups, I hate starting things. I'm so happy with the results and I know the pain needed to get through it, but I just, oh gosh. When you start a business, everything is urgent. So now, no one has any key performance indicators because every day it changes. So what you have to do, Natalie, is define what are the key performance, what are the key action items that need to be done every day? I'm going to go ahead and give them to you right now to help you, but this is a rhetorical for anyone watching, okay? So you'd want to say, how many people a day do I need to call to set up an appointment with to talk to them about donating? How many people a day do I need to talk to? I'm going to give you that number right now because I've helped nonprofits. Ten. -Ten people a day. - You mean I need to call ten a day? Yeah. Is that too many to call? No. Because you're only going to probably get two people to answer the phone. Then you need to agree your second key performance indicator is how many people a day do you need to meet with? I would say two. You mean I need to meet with two people a day? Yeah, that's why a lot of nonprofits spend 20% of their day drumming up money, every single day. So, one is define how many people a day do you need to call. Two, how many people a day do you need to meet with? Three, how much many a day do you need to bring in? Four. This all seems about money. The fourth is how many people do you want to interact with or help every day. So, you're a nonprofit, you're goal is to help people. So, how many people do you want to interact with? I would hope that number is greater than two. I mean if you're meeting with two people a day to raise money, I might recommend you say I want to help 20 people a day. I mean you've got to show that you're being a good steward of the money, and a much better steward of the money than I, than the person you're getting money from would be, otherwise why would they donate to you? So you want to show that you're able to use the money in a way that's better than how they could use the money to make an impact. As an example, my wife and I donate to a couple of organizations where there's kids in foster care. And third world countries that don't have a mom and dad, and they have a tough existence. So we give money to them because 90 something percent of the money gets directly to the kids. And I know that if I were to book an airline ticket to Africa and try to find the kids, and give them the toys and the food and the things they need and the clothing, I couldn't do it as effectively as that organization. So you want to be able to show, as a key performance indicator to someone donating, this is how many people a day that we touch. And the next one, I've only got a couple more, The next one is you want to figure out how will you measure success? -How do you know when you got there? - Yeah, so Bill Gates, the Bill and Melinda Foundation, the Bill Gates Foundation, it's phenomenal what he's doing by the way. And I want to put up some stats on the screen, but and we'll have our research team put them up here. But what's happening is Bill Gates has decided he's going to hone in on a number of people, a certain cause or a certain organization he can help. And he's going to focus his energy there so he can go to a guy like you and me, Marshall, and say, hey, this is how we made an impact this year. Because everyone hates, hates it, hates it so much, when they give money and they don't know if they actually made an impact. So again, Natalie, the big five for you is one is how many people a day do I need to call? Two, for a donation. Two, how many people a day do I need to meet with, right? Three, how much money do I need to bring in a day? Four, how many people am I going to touch? And five, how am I going to measure success? And if you back to your board and say, hey, we helped lead ten kids out of a drug lifestyle this month. That's something I go, okay, I've donated money to you and I feel good about it. But you have to define your key performance indicators. Otherwise, you're just a whole bunch of people getting together and you're a bunch of happy hopers. You just get together and you hope and you're happy and you just talk and you're like, do you guys have any white cheese cubes we could have? Who's bringing cheese to the next board meeting? And you're just having these endless meetings and nothing is getting done. You have to define those five KPI's. -Boom. On to the next action item. So once you've defined those daily KPI's, you have to attempt to sell it. -Sell it, what do you mean sell it? You have to convince your team that we're going to do this. You have to actually go out there and say, team, we now have to do this. You have to sell your team and sell people outside of your team that you're actually on these daily key performance indicators. You've got to sell your internal team. Team, these are the five things we have to do every day. And now you've got to go outside of the building and convince other people that they're going to actually donate. I mean, it's all just hoo-ha and poppycock if you don't actually get... Hoo-ha and poppycock and shenanigans and it's all mindless and meaningless, frivolous, stupidness if we're not actually executing. So what we need to do is go convince other people to actually donate and convince your team to do their key performance indicators. I was working with a church about 8 years ago in South America, true story, I was on a phone call with this guy. And he did this process. And never been more excited about a person. And he came back from Brazil, true story, he came back and he said, you know what I did? I said, what? I did my key performance indicators and I convinced people to donate and I showed them I met with this many people a day, I call this many people, I met with this many people a day, and they donated, and it was a large amount of money. They would actually build houses. So they started a, think about this, it's a nonprofit home building company in Brazil. And they would build homes. Why would they build homes? Because it allowed them to employ people which allowed them to make a bigger impact on the community and the profits they would use to fund the ministry. So he needed to get seed capital for the first million dollars so he could go out there and build homes, sell the homes, make a profit on the homes, use the money to build other homes, obviously, but also to donate. He wanted to spend the majority of his schedule doing ministry. And at first, the majority of his time was just raising money and building houses. But now, his name is Reubens, and now Reubens spends probably 90% of his day doing ministry. Unbelievable. Unbelievable. But that's an example of how that works. This is how you do it. So you have to go out there and convince, you have to convince people to actually donate. Then had to convince his team to actually build houses, and why they were building houses and where the money would go to. So you've got to sell people inside and outside the building on this once you defined your KPI's. - Okay, so you have to attempt to sell it. Then the next thing is to measure the results and the rejections you get. Why is this important? - You only measure what you treasure. -Okay. - So if you don't measure it, you don't treasure it. So as an example, on Thrive, this just an example of why startups make me nuts. I really do, startups make me crazy. I say crazy, like I can't sleep because I'm focused on getting it done. How many people on the Thrive15 platform use the Community section? You know, so, people who don't understand Creation, so it's like, hey God. Imagine God, Genesis, you know? And those of you who don't believe in this story just work with me on this. Imagine this, we'll get... So it's like you know, on the first day, God created, what he'd do? -The heavens and the earth. - The heavens and the earth. And then you get the bureaucrat in the room who's like, what were the metrics on that? I'm God, I said create the heavens and the earth. And then the, well, what were the metrics? The metrics were that you created the heavens and the earth. I guess you're two for two. I don't know. Right? But then once you create the heavens and the earth, what'd he do the next day? What'd he do the next day? And then on the second day, God said, Marshall, help me out here. -I'm pulling it up here. You've got it pull it up here. It's been awhile since I memorized the entirety of the Bible. And then God said the second day, let there be, what does it say? - And God said, let there be light and there was light. - Okay, let me try it again. And then God said, let there be light. The bureaucrat says, what were the metrics? I just turned the freaking lights, sorry God, I don't talk that way, turned the lights on, I turned them on. Just calm down now. And then on the third day, what did God say? - Let there be firmament in the midst of the waters and let it divide the waters. - Let there be a firmament. A little bit deep here for you, but Judeo-Christians believe that there was actually a water dome that surrounded the planet and it sent half the water up into the air and half of the water down into the water, you know down into the oceans, and that's why they believe that when the great flood happened, it penetrated the firmament and it all fell in. Kind of crazy. Okay, the next day, what's the next one? - Well, our days are off but the fourth day... - The fourth day. - Let the waters bring forth abundantly the moving creature that hath life, the fowl that may fly above the earth in the open firmament. - Without you reading it in a stereotypical biblical voice, I don't think that people understand what you're saying. Could you try it again, please? A little more stereotypical biblical, please? Give it a whirl. - Okay. Let the waters bring forth... - Oh nice. - Abundantly the moving creature that hath life and fowl that fly above the earth in the open firmament of heaven. - And then the bureaucrat said, well, so what were the metrics? I don't know, I'm creating something. Now once you create something, right? Then you say, okay, we've had the Community section up here for awhile, it actually works. Now what percentage of people are actually using it? And what percentage of people are not? What percentage of people are commenting? What percentage... You can't measure anything until it exists. And that is the problem with startups. Because small business school, and the MBA programs, and all this business college stuff, teaches you've got to know the metrics. I'm 100% a fan of the metrics. Elephant in the room, I know how many people are on the site every day. I know how many people are converting. This is big stuff. So make sure you understand this, don't get, because if you build a board, Natalie, you're going to be a little frustrated because the board is going to want to know the metrics. And you're like, I'm just trying to create something here. What was the next day? Throw me something, throw me a line here. Tell me what was the main thing? - And then God said, "Let us make man in our image, after our likeness and let them have dominion over the fish of the sea and over the fowl of the air and over the cattle and over all of the earth and over every creeping thing that creepeth upon the earth." - And carnivores be cautious real quick. I didn't say, I said dominion, not eat them. You know what I'm saying? Hahahaha. Don't eat the fish. The thing is, I want to make sure you're getting this. You have to create it and then you have to measure it after you do it. So, Natalie, I'm just trying to help you. You have to go ahead and start to measure the results. Even though you and I know you've never made a cold call before, ever, to raise money. And now you just made your first one and so you're zero for one. But the board's going to want to know, What was your closing percentage? Um, 0-1? Let me ask this question, Judeo-Christians, what was God's closing percentage on convincing the first kids in the Bible, remember there's Adam and Eve and they had some kids, what was God's conversion percentage on convincing the first kids on the planet to not kill each other? I guess he was one for two? Didn't one of them kill the other one? One for two. Fifty percent, God. So all I'm saying is we've got to get off the whole metrics thing until you get it created. Once you get it created, they you have to measure. Marshall, am I clear? - You're clear. So you've got to measure the results, but only after you attempt to sell it. You've got to do. -You've got to do. - What's the Reid Hoffman quote? - You've got to define, okay? Then you've got to act. Then you've got to measure. Then you've got to refine. -Okay. - And you've been going, where are you getting this? Where is this from? If you get the book, it's called The Startup Playbook if you can pull it up on the screen, Startup Playbook. It's got a yellow cover to it. All you do is read? Yeah, look at me, it's obvious that's all I do is read. So, The Startup Playbook, Reid Hoffman, it's an awesome book. This book is phenomenal, it's sensational. Click on images, I'll find it real fast. There it is The Startup Playbook, bam. Get that book, in there there's a lot of great tips.

Let's Get Started. Try Thrive15
Login Try Thrive15
search icon
Feeling Stuck? Ask our Mentors any Business Question.

Ready to Thrive? Log In to your Account.

Login with your email
Please enter your email.
Please enter your password.
Login with social accounts
Signup | Forgot password?

Forgot Password?

Send us your email address, and our team of elite minds will get right on it.

Sign up to Thrive15

and get unlimited access to 1,700+ courses
  • Full Access

    Month-to-Month
    $ 49 /mo
    Try it free
    • World-class mentorship
    • 24/7 access to all videos
    • Practical business tools
  • save $98 on an annual membership

    Annual

    Year-to-Year
    $ 41 /mo
    Save $98!
    Try it free
    *Billed as one payment of $490.
    • World-class mentorship
    • 24/7 access to all videos
    • Practical business tools
  • Thrive15 group memberships

    Team Membership

    Need to train five or more people?
    Learn More
Graduation Cap Icon College student? Sign up for $19/month. Learn More

Contact Us

Give us a call or send us an email and we will be in touch as soon as possible, or sooner than as soon as possible.

Email: info@thrive15.com
Phone: 1-800-594-4457
Prefer communication by smoke signals?

Ask us a question!

We want to answer you, no strings attached. How can we reach you?

Please enter your name.
Please enter your phone number.
Please enter your message.

Feedback

Let us know what's going on.

Please enter your subject.
Please enter your message.
Even more feedback