Key Operating Indicators
Many wholesalers struggle with developing an effective Key Operating Indicator (KOI) system. These wholesalers are often times too concerned with automating the system rather than getting the KOIs in place, even if it means having to report them manually on excel spreadsheets. Verno Consulting has the benefit of working with many wholesalers who we consider world class; yet, most of these wholesalers have struggled to significantly automate their KOI reporting system.
Below are some of the essential KOIs that every wholesaler should consider tracking to measure the effectiveness of each of the departments.
How to Implement KOIs
If a department manager or one of his or his subordinates has to spend 15 minutes a day inputting data into a KOI spreadsheet this is time well spent. The department manager will be more on top of the business and will see the KOIs in real time. Upper level management will be able to judge key performance criteria when they receive the KOI rollup.
Long-term development efforts by route accounting providers and wholesaler IT departments still need to be made to automate as much of the KOI process as possible. While this development process is taking place, wholesalers can still manually generate KOIs. When the KOIs are eventually automated, the managers who had previously inputted the data manually into the KOI spreadsheets will have a better understanding of each KOI being generated automatically and will know how to manage with the automated KOI information.