Have you ever considered the benefits of measuring team performance in your network marketing business?
Does it really matter how your team is going, does their performance have an impact on your business and if so, how do you measure team performance in a way that will provide you with helpful data for forward planning and ultimately business growth?
To help answer these questions I would like to take a few minutes to explore the concept of measuring team performance in a little more depth.
I want you to really consider what impact this process could have on helping you as a network marketing entrepreneur to better analyze YOUR business results so that YOU have good 'solid data' at your fingertips - data that will assist you to develop an mlm business plan and therefore be very clear on your future business direction and growth potential.
If you don't know how your business is presently performing and what areas are important to monitor, how on earth are you going to know where to spend your time to drive your business growth forward?
Before we proceed it is important that you have a clear understanding of the key result areas for your business. Without this knowledge you will not be ready to learn more about the next step of measuring team performance. So if you haven't read the page on key result areas, I recommend you do so now and then revisit this page on measuring team performance.
Click here to take a short detour to key result areas………>>>>>>>> Otherwise, stay with me as we explore this interesting area of measuring team performance in a little more detail.
How do key result areas and measuring team performance interrelate?
Well the answer is quite simple really………
Once you have determined what the major areas are where you get results in your network marketing business then the next step is to measure performance in each of those key result areas.In other words:
What you are looking for in every case are KEY PERFORMANCE INDICATORS!
Key Performance Indicators are also commonly referred to as KPI's, so you could see either term used in business materials.
You will find that measuring team performance by developing key performance indicators is a practice used in most large businesses and in many small businesses as well. It is a well recognized process for analyzing business performance and measuring team performance so that real data can be collected and used as the basis for forward planning and performance improvement.
Developing key performance indicators is also equally important for the network marketing entrepreneur.
If your goal is to develop a large and successful network marketing business then you will get real value from learning about how to measure team performance through identifying KPI's and applying this skill directly to your network marketing business.
So what is KPI or Key Performance Indicator?
Key performance indicators are the control points in your business that provide you with the information you need in order to monitor the progress of your team and your business overall.
So where do you find Key Performance Indicators in your business?
How will you know them if you fall over them?
Well, to be honest they are everywhere in your business, you just have to know where to look!
Many key performance indicators can be found in business reports which track your business activity, progress and outcomes.
Additionally, you can identify key performance indicators by having first identified the key results areas for your business. The two are very closely linked. This will become clearer as we explore measuring team performance further.
So, what does a key performance indicator look like?
Does it have distinguishing characteristics? Will you recognize it easily?
Let's look at the 5 distinguishing characteristics of a key performance indicator.
Key performance indicators:
So let's look at some examples of key performance indicators
Let's take a key result area that would be commonly found in a network marketing business and convert this to a key performance indicator which would assist you in measuring team performance within your business.
Then we can see if it meets the 5 distinguishing characteristics of a key performance indicator as described above.
KEY RESULT AREA = Sales volume increased
KEY PERFORMANCE INDICATOR = Percentage Sales volume increased per annum
Let's break this down:
In this case a 'sales volume increase' should be within the area of control of all network marketing entrepreneurs as they work towards moving their business forward - so this key performance indicator is totally relevant to a network marketing business.
Let's look at another example:
KEY RESULT AREA = Distributors sponsored
KEY PERFORMANCE INDICATOR = Number of distributors sponsored per week
Let's break this down:
In this case 'distributors sponsored' should be within the area of control of all network marketing entrepreneurs as they work towards moving their business forward - so this key performance indicator is totally relevant to a network marketing business.
Let's look at one last example:
KEY RESULT AREA = Products sold
KEY PERFORMANCE INDICATOR = Number of Products sold per month
Let's break this down:
In this case 'product sold' should be within the area of control of all network marketing entrepreneurs as they work towards moving their business forward - so this key performance indicator is totally relevant to a network marketing business.
Quantity Vs Quality
When you consider the key performance indicators that will help you in measuring team performance and the overall performance of your business you need to give equal consideration to both quantity and quality aspects of your business in order to be sure your results are focused in both areas.
The key performance indicators above are all measuring team performance in the area of QUANTITY.
So what about QUALITY - how do you measure the quality aspects of your business, in other words, what key result areas in your business focus on quality?
Here are a few examples for you to consider:
Measuring team performance is an integral part of analyzing mlm business results. If you don't know what to measure you won't know what the real indicators of performance are in your business. If you don't know what the real indicators of performance are then you won't have reliable data based on actual results which you can then use for both short and long term forward planning.
Let's just revise the main points I have covered for measuring team performance through key performance indicators.
If you learn, practice and apply the fundamental skill of measuring team performance by developing key performance indicators for your business you'll be amazed at how easy it is to analyze your key result areas, business growth trends, and identify areas for improvement.
By measuring team performance
based on developing key performance indicators
you will build a strong foundation for: