Don't run your business blind
Identify your key result areas


One of the cornerstones of analyzing your business growth opportunities is to know your business's Key Result Areas!

In other words, do you know exactly how and where you get results in your business?

If you don't know this, how on earth are you going to know where to invest your time and money and ensure you get the best 'bang for your buck', or 'return on investment' (ROI)?

So often I see network marketers, and for that matter, people in business generally so busy in the day to day operation of their business they hardly have time to breathe. They almost make a religion out of being busy! In fact it has become very trendy in today's world to be frantically busy both in your working and personal life and if you are not busy there must be something wrong with you, right? We have become conditioned to believe that 'busy is best' and we fill our lives up with doing 'stuff' so we can feel that we are valued in some way.

The problem is this………From a business perspective busy is not necessarily best!

It should be about working smarter not harder.

One of the foundational elements of working smarter not harder is to really understand what makes your business tick.

  • What are the key result areas in your business?
  • What areas in your business impact your 'bottom line'?
  • Where should you spend your time, energy and money to ensure you get the best outcomes for your business?


The only way to get real answers to these questions is to learn and apply 'four cornerstones' which are foundational to analyzing your business and underpin strategic forward planning.

These 'four cornerstones' will help you to analyze and manage your business more effectively so you are busy doing the 'right things' - the things that will get you the network marketing results you are looking for in your business and impact your bottom line!

Understanding what the key result areas are in your business and then knowing how to apply this information in a practical way to move your business forward is paramount to your success.

Below I have listed the 'four cornerstones' required to build the skills framework which will enable you to analyze your business performance and implement strategies for business growth. You must be familiar with and able to apply these cornerstones to your business in a practical way if you are to realize the true potential of your business.

You need to be able to:

  • Identify Key Result Areas for your business




If this sounds like hard work, or maybe something you don't see as important for your professional development and the ultimate success of your business, I would encourage you to think again. Don't take a less than professional approach to managing your network marketing business otherwise you will get a less than professional result.

Resist the temptation to fly blind as so many people do in business because it seems like the easiest route.

Sadly many network marketing business owners fall into this trap. It may be because they lack skill development, competence and coaching to operate their business at a more professional level. Or maybe they simply don't have a business system to follow. Regardless of the reason it is disappointing to see how many network marketers run their business by:

  • Just taking a stab in the dark
  • Assuming they are on the right track
  • Spending time just being busy on stuff
  • Incorrectly prioritizing the day to day operational responsibilities and placing them ahead of what makes a difference in their business - that is, the key result areas that produce results in business



When the blinkers are removed by identifying your

Key Result Areas

(or KRA's as they are commonly known)

the light goes on and you are then able to

specifically target the aspects of your business

that will directly impact your 'bottom line'.




This is like hitting the success bull's eye first time rather than not being able to see the target at all!

When you know your key result areas you are no longer 'flying blind' but instead have a clear picture of the areas you need to give priority in order to achieve business growth and success. Your business is way too important to leave anything to chance and identifying your key result areas is an insurance policy that will help you avoid this nasty trap that many business owners fall into.

Because people are so busy today no one wants to waste precious time in their business just doing activities and tasks that really don't have any impact on achieving business results.

Therefore, giving priority in your business to identifying your key result areas is pivotal to your business success!




So let's look more specifically at key result areas - one of the 'four cornerstones' of analyzing your business and providing a solid foundation for forward planning.

Here are some important questions you should ask yourself as we begin to explore the concept of identifying key result areas:

  • What is the purpose and function of my business?
  • What are the results I get in my business?
  • In what areas do I provide a product or service to my customers?
  • What are the areas of my business that impact my bottom line?
  • What are the 'quality' aspects of my business - in other words, what is the quality of products and/or services I provide, how does this affect my customers and ongoing business growth?
  • What are the 'quantity' aspects of my business - in other words, how many customers do I serve on a regular basis, how many sales do I make, how many business distributors do I sponsor, what is the percentage of sales growth achieved per annum, etc?


Let's break this down even further………


When we do any kind of job analysis it is important to consider the three elements of that job, whatever that job might be.

The three main elements of any job or business operation are:

  • INPUTS - This is the work coming into a job or business and resources required to do the job or run the business.
  • TASKS - Also referred to as activities, actions or steps. These are the operational things you do each day and are required to keep your business running smoothly.
  • RESULTS - Results are the output of the work you do in your business. Results include both quality and quantity aspects of your business. It's about how much and how well you perform the various aspects of your business.


Let's look at a common example of an input, task and result for a network marketing business:

  • INPUT - Customers to service
  • TASK - Serve customers
  • RESULT - Customers served


Get the picture? Really simple isn't it! It is not really any great mystery.


So how can you identify a RESULT? What makes it different from an input or task?

A RESULT is a primary indicator of:

  • Quantity - that is, how much or how quickly a particular outcome is achieved in your business
  • Quality - that is, how well a particular outcome is achieved in your business


Here's a quick and easy test you can apply………




If there is no outcome for your customer,

your business prospect, or your business growth

it is NOT a RESULT!





Let's just look at a few more examples so you start to get the idea of how this all works.

I'll start by looking at some common network marketing INPUTS.

Then I will translate those same INPUTS into the TASKS you would need to undertake to action the INPUT.

Once the TASK has been completed, if it produces a quantity or quality outcome for the customer, business prospect or individual network marketing business then it means a RESULT has been achieved and a KEY RESULT AREA identified for that business.

EXAMPLE ONE:

  • INPUT - request to purchase product from potential customer
  • TASK - Place order for product
  • RESULT - Product sold


The key result area in this case might be 'Products Sold' which could be measured in terms of quality and quantity.

If you were to include this key result area as part of measuring your business performance and forward planning you could evaluate:

  • The total number of 'products sold' during a specific time frame, e.g. per week, per month etc - quantity result
  • The total number of 'products sold' where the order was placed within 24 hours of receiving the order from the customer - quality result


EXAMPLE TWO:

  • INPUT - request from business prospect to register in your network marketing business
  • TASK - complete new distributor registration process
  • RESULT - Distributor sponsored


The key result area in this case might be 'Distributors Sponsored' which could be measured in terms of quality and quantity.

If you were to include this key result area as part of measuring your business performance and forward planning you could evaluate:

  • The total number of 'distributors sponsored' during a specific time frame, e.g. per week, per month etc - quantity result
  • The total number of 'distributors sponsored' where the registration was processed within 24 hours of receiving the request from the prospect -quality result


EXAMPLE THREE:

  • INPUT - new product released by network marketing company
  • TASK - brief all customers on new product release and facilitate placement of orders
  • RESULT - Sales volume increased


The key result area in this case might be 'Sales Volume Increased' which could be measured in terms of quality and quantity.

If you were to include this key result area as part of measuring your business performance and forward planning you could evaluate:

  • The total percentage the 'sales volume increased' during a specific time frame, e.g. make your comparison on a week to week, month to month or year to year basis, etc - quantity result
  • The total percentage the 'sales volume increased' where the order for the new product was placed within 4 weeks of the new product being released -quality result


We have just looked at three examples key result areas that are common to network marketing. There are heaps more……….

Have a play around with this concept and see what you can come up with for yourself, you will probably be surprised at how many key results areas you can identify for your network marketing business.




In other pages on this website I will take you through ways you can use this skill of identifying the key result areas for your business and apply it to:

  • Writing an mlm business plan
  • Effective coaching






Developing the skill of being able to

identify the key result areas for your business

will have a significant impact on your ability

to target business growth opportunities accurately.


It's like taking the blinkers off

and hitting the 'success bull's eye' first time!







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