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Entries in Daniel Gonzalez (1)

Tuesday
Mar292016

Define, Measure, and Monitor Key Performance Indicators for Club Success

Daniel Gonzalez, chief financial officer for Universal Athletic Club, provided insights on how to use key performance indicators (KPI’s) for club success in his IHRSA 2016 session, “Key Performance Indicators and Your Bottom Line.”  

Gonzalez listed several reasons to define and monitor KPI’s as a club operator: 

  • Clearly define a path for your organization
  • Clarify performance expectations
  • Manage more objectively
  • Focus people’s attention on what is important
  • Run more effective meetings
  • Hold people accountable  

As a club executive, it’s important to keep two specific key traits in mind when understanding KPI’s. KPIs are both actionable and business results-driven. 

In order to choose the most effective KPI, Gonzalez emphasized the need to identify the primary business result or goal. Every employee should have an ongoing quantitative KPI or two in order to answer the question, “Did I have a productive day or week?” 

To determine effective KPIs for your club, Gonzalez offered seven characteristics of effective KPI’s: 

  1. Simple: Need to be both comprehended and measurable. KPI needs to prompt decision.
  2. Aligned: KPIs need to be developed from overall strategic goals of the organization and translated into actionable daily operational tasks.
  3. Relevant: Applicable to respective decision makers within various levels of the organization or department.
  4. Measurable: To analyze positive and negative variations from a goal.
  5. Achievable: KPI goal should be reasonable and attainable or else it may negatively impact team morale.
  6. Timely: Should be monitored and reported on a regular basis via a dashboard or other method.
  7. Visible: Goals are achieved more readily if staff members are aware of KPI’s and progress towards goals.  

In order to define a club’s KPIs, they should revolve around three goals: 

  1. Attract: Gain new prospects
  2. Sign: Acquire a new member
  3. Retain: Create loyal promoters