and superior training, unique diving experiences, first-class service, and top-tier equipment for life-long scuba adven- ture.” Your mission statement should not only tell everyone what you are going to do, it should also exclude what you do not intend to do. Don’t underestimate the power of a well-constructed mission statement, especially when imple- menting a balanced scorecard. Let’s now move into the development of key perform- ance indicators, their targets, and initiatives. Figure 1 pro- RETAILING continued
with customer follow up supports your values of first-class customer service. There are several key performance indicators that can be used to target the top-tier equipment for life-long scuba adventures element of the mission. Assuming that XYZ Dive Shop has dealer agreements in place with major equipment providers, then selling that equipment to both new and existing customers is imperative to keep them div- ing, engaged, and traveling. There are three KPIs specifi- cally developed for this part of the mission. Tracking the percentage of open water customers who purchase additional gear beyond their per- sonal mask, snorkel, fins, and boots during training, and the percentage of those open water students who return to the dive shop after their certifications allows us to zero in on the growth of our business. Another measure that can give us an indication regarding our commitment to life-long scuba adventures is tracking the number of customers who purchase the big three; a dive computer, a buoyancy compensator, and a regulator. Customers who have made the significant investment in this gear are more likely to want to get out there diving and more likely to sign up for an upcoming dive trip. The ini- tiatives specifically targeting this KPI include creating pack- ages, incentives, and a comprehensive marketing plan. The dive shop business model is complex. Most dive businesses include retail sales, training, service, and travel. Consideration might be given toward developing a bal- anced scorecard for each of the segments. In business, we use our profit and loss statement and our balance sheet as our scoreboard. They tell us if we are win- ning. Winning requires us to do more than just show up. We need a game plan, and we need to prepare. By using a balanced scorecard, we can establish the plan for moving forward and measure our progress, make adjustments, and stay on track. As Yogi Berra once said, “If you don’t know where you are going, you might end up some- place else.” Be where you want to be; winning with a bal- anced scorecard.
vides an example of a scorecard supporting the mission of the dive shop. As you can see, we’ve estab- lished three unique KPIs for each of the four areas of the scorecard. Again, the total number of indica- tors optimally should be in the 10 to 20 range. Given the complexity of
the dive shop business model, you may want to be on the upper end to cover all areas of the business. When you are establishing a measure, you will also need to make sure that you have the ability to measure it. However, as we discussed in part 1 of this series, just because you can measure some- thing, it only matters if it is relevant to your mission. When we look at the mission statement related to safe and superior training, there are several KPIs that support this element. Starting with our growth and education area, we’ve established key indicators around new professional designations by the staff as well as targets for staff attend- ing training and meetings. In our internal category, there is a KPI for training quality that incorporates independent reviews, student input, and lessons-learned sessions. Safe and superior training starts with your team being properly trained but also having some level of evaluation process if we are to deliver on this area of our mission. First class service can be a little nebulous and is really in the mind of the individual getting the service. We can, however, set the expectation with service levels. In our ex- ample, the development of the average days to close a work order key performance indicator is also our service level to the customer. You must be realistic in setting this target given your staffing levels. Also, if you strive for first class service on work being performed, then the quality of the work is critical. Tracking the percentage of returned service items for rework through a quality control program and
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