You don’t know what you don’t know!
The view from the window at Resonate HQ on a brisk winter’s morning is sublime. The backdrop of the Perth city skyline as it begins to glimmer with the first rays of sun, and in the foreground a stream of commuters that have disembarked the train and are heading to work to begin the daily grind. However, as if the parking at train stations wasn’t bad enough, the commuters often have to endure a cloud of cigarette smoke as they pass by.
For a little over a year now we’ve been watching the crew across the road (business name withheld!) as they venture outside for a cigarette break during the day. We’ve affectionately named them Dartman 1, 2 and 3. Some close analysis has revealed that Dartman 1 & 2 venture outside on average 7 times per day. Dartman 3 is less frequent, averaging around 4 times per day. More recently the team has been joined by Dartwoman 1 and 2. Dartwoman 1 is only twice per day, Dartwoman 2 is more of a social darter: Friday afternoon with a glass of chardonnay seems to be her prime time.
What are you going on about? You may ask. Well, at Resonate, it always comes back to numbers. We’ve got spreadsheets to track stationery usage. So, we put together some numbers to calculate the lost productivity of the Dart Crew just to see what it was costing Business X to fund dart breaks on company time. We’ve made the assumption that the average hourly charge out rate of the dart crew is around $100 per hour. It could be more, but they aren’t lawyers. The table below calculates the foregone revenue for the dart crew over the course of the year.
For illustrative purposes only, if the dart crew were (cheap) lawyers charging $500 per hour, the foregone revenue amount is an astronomical $178,000 per year!
This example illustrates the critical importance of having quality data and custom KPI’s for your organisation. Drivers of profit vary from one organisation to the next. For example, a retail business places higher importance on the age and value of stock levels. A pub/hotel needs to focus on the ratio of labour to revenue, while a service-based business should reconcile hours billed to clients against labour hours paid, as this provides the most accurate measure of employee productivity.
We can help you identify custom drivers for your business, and implement strategies to improve the quality of your financial information. Don’t hesitate to call on 08 6298 7320 or email info@resbc.com.au for a chat about this anytime.
In aid of Men’s Health week, chemist warehouse have a promotion where you can trade a cigarette for a pack of Nicorette patches. We’re going to drop a flyer to the dart crew later this morning. Visit http://www.chemistwarehouse.com.au/category.asp?id=800&cname=Nicorette for more info.
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