Continous Improvement

We are almost to the end of January and I hope everybody has had a chance to reel in their 2011 numbers.  While those numbers are fresh in your mind I encourage you to look them over and pick three that you feel you can improve on.  Then unlike the New Year’s resolutions you made just under a month ago, look at these numbers with some scrutiny and develop a plan to improve them throughout 2012.   What numbers you select will be different from each other but the ones I like to look at every year on the financial side are; Paint Material Sales per Flag Hour, Overhead Expense as a percentage of Sales, and Total Gross Profit, then on the operations side I like to check closing ratios, CSI scores, and Technician Production percentages.  Once you pick your numbers find out what they would be if you increased them by 1%.  Those that know me well have heard me talk about the power of 1, the number is small by itself but when it is used as a multiplier the magic begins. Let’s say your total gross profit is 42%, what would that dollar amount look like it   if your gross profit was 43%?  What would your closing ratio look like if it was 78% instead of 77%?  I think you will find that increasing any number you look at by 1% will improve your bottom line substantially.