Measuring the wrong numbers can bankrupt you

There is a common business principle that says that “What you measure gets improved” Here is the problem. Out of the 100’s of brokers I have consulted, trained and coached I can only recall a handful of brokers that knew that contribution is the most important number to be measured. Contribution is the revenue generated per associate that you retain in order to pay your bills. Let me give you a classic example of measuring the wrong number. I had a broker client a number of years ago that had 130 agents, $1.2 million dollars in gross revenue, one location, productive agents averaging $80,000 in gross commission income annually. So far so good right? Here’s the problem. He was losing $250,000 a year. Why? The answer is that he was not earning the contribution that he needed in order to be successful and profitable. This above example proves that by measuring the wrong numbers can be disastrous. At Strategic Peak Performance Coaching we have developed a “Strategic Audit” process that defines the Contribution per person objective. Once that number has been established we need to align our financial models (compensation programs) to the objective. The answer is all your problems is not necessarily hiring more agents or making them more productive. The key to success is achieving the contribution objective. Please call us for more information about our consulting and coaching services in order to guide you to profitability today.