Unlock Your Company’s Full Potential with KPIs
You may already hold the key to unlock your company’s full potential. Are you ready to unleash the beast?
Departmentalization is a strategic action step to help you build significant momentum quickly. Think of it as your foundation for growth. Departmentalization gives you the power to segment your business into measurable areas and the tools to create long-term employee loyalty, customer satisfaction and company profitability. Use departmentalization to:
- Analyze the performance, profitability and strategic fit of a specific function or division
- Develop strategies to improve individual department performance
- Link employees to the company’s vision and values to increase buy-in
On the practical scale, departmentalization puts revenue, expenses and all associated financial components of a department into manageable categories, or buckets. Examples include: residential replacement, commercial, residential new construction, duct cleaning (or other services).
This segmentation and structure allows you and your management team to consider each department individually, developing specific key performance indicators (KPIs) for each function. These precise KPIs help you measure how the departments in your organization are doing strategically. you can also gauge performance against past benchmarks and industry standards.
Here are the top five KPIs to concentrate on to deliver outstanding performance:
- Revenue per employee
- Retail sales
- Demand services
- Installation revenue
- Maintenance agreements
Take a hard look at your business. Is it time to departmentalize? Are you ready to move to the next level of expansion and success? Don’t go at it alone; let Lennox help you! For more information, visit the HVAC Learning Solutions page on Operations Accountability.