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Measures to Manage Performance
10 Key Performance Indicators Your Club Should Live By
BY BILLY KATELNIKOFF
business, and this can positively im- pact decision making. Here are 10 key performance indi-
E
cators (originally put forward by Drs. Robert Kaplan, of Harvard Business School, and David Norton) that can help you assess your club’s over- all performance from four different perspectives.
STAFF AND CULTURE PERSPECTIVE
your members experience on a day-to- day basis. An effective and motivated team benefits your members which in turn benefits your business by generat- ing greater sales. This measure is sim- ple to calculate: take your revenue and divide it by wage costs plus any direct training costs. This measure is a great way to evaluate the effects of train- ing programs over a period of time or a change in compensation model.
1Return on staff investment
should always be done with caution. Employee attrition should be looked at over a period of time and compared with other measures, such as return on staff investment and all of your in- ternal process measures. Even if attri- tion is very low, your internal process- es may be failing. This may indicate a need for additional staff training or for new hires with different skill sets.
2Employee attrition 22 Fitness Business Canada September/October 2013 Measuring employee attrition Your employees create the vibe that
INTERNAL PROCESS PERSPECTIVE
3Net new members per month
Tracking sales statistics can be diffi- cult. However, tracking member num- bers and monitoring increases and de- creases from month to month is very simple and generally much more ac- curate. Targets should include not just new members, but also expired and cancelled members.
4 Operating costs as a percentage of revenue
Tracking company expenditures as a percentage of revenue is helpful in re- vealing problems. If your expenditures are too high, it will impossible for your club to be as profitable as you know it could be.
5Percentage of existing
the year Communicating regularly with mem- bers is one of the most important, if not the most important, internal pro- cess there is. Create policies around the frequency of calls and mailouts, etc., to be sure you keep your members at your club.
MEMBER PERSPECTIVE 612-month rolling attrition
percentage
Track your rolling 12-month attri- tion to see your club’s attrition trends. Then check all internal process mea- sures to determine what shortcomings may be causing higher than expected attrition rates.
members contacted during
valuating your organization’s performance in a meaningful and objective manner gives you a clear understanding of your
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