I often see high-level managers and business owners express an almost irrational fixation on a singular internal metric or Key Performance Indicator (KPI). Their steadfast focus, while admirable, is often shockingly misguided and harmful to the business. This owner intensity typically drives the organization to dramatically improve one specific metric while ignoring others, which frequently results in business trauma, unintended consequences and collateral damage.

One organization I recently worked with focused all of their attention, compensation and recognition on their top volume revenue producers. They characterized these agents as ”top performers” and rewarded them as such. Upon closer inspection, however, the agents who had produced the most revenue were not the best salespeople. They were simply “churning” calls and skimming opportunities rapidly for the easiest sales. This “cherry-picking” does produce large revenues; however, it does so at the expense of more needy customers who require greater attention and patience. Once conversion of opportunities handled and a customer service index were added as performance indicators, many of the perceived top agents fell significantly in the rankings. Although they were producing large revenue sums, the hidden collateral damage they were doing to the brand through their insensitivity to other customers largely outweighed the positive sales results they were generating. This situation is tragic…and common. Conversely, with the new performance indicators in place the true capabilities and contributions of some of the near-top and average agents were seen for the first time.

In one industry, an owner might place all of his focus on sales revenue only to get burned by profit slippage from excessive agent-to-customer incentives or discounts, or on the back-end through poor quality sales resulting in high accounts receivable defaults. In another scenario, an owner may become fixated on utilization percentage (as in car rental or hotel room usage) while simultaneously neglecting to see the harsh effect of the lower daily rates needed to drive that utilization. If you had a four room hotel, would you rather have 100% occupancy at $100 per room night or 80% occupancy at $150 per room night? The first example produces a Revenue Per Unit of $100 while the less-used property produces a Revenue Per Unit of $120 — a 20% revenue premium for less work! Factor in the reduced labor needed to handle the lower number of transactions along with the reduced product cost, and you see a new perspective surface. In yet another case, transactions produced per hour may be the driving force while little or no consideration is placed on the profit or brand-building potential of those transactions to the organization.

All of these metrics, along with many others, are worthwhile and critical to your success. However, it is important to remember more often than not it is the calibration of several Key Performance Indicators that will ultimately drive the two metrics that matter most, long-term customer care and profit.

Chris Brown- Senior Vice President, Frontline Performance Group

Most companies have four to six customer touch points and related sales opportunities.

If you map out all of your customer contact points, you will find that many of them present substantial revenue opportunities, and all of them provide significant service improvement opportunities.

Look at each of your customer contact points and figure out what influence your frontline can have through them.

Hiring the right frontline associates can make or break a business, so it is imperative you know what to look for. Here are a few key attributes qualified individuals should possess:

• Personality – A great personality is a must for a job that is all about dealing with people and being able to influence their buying decisions. 
• Positive Attitude – The team member you want on your frontline is the one who not only shows up for work with an outstanding attitude but can maintain it in the midst of trying circumstances.
• Confidence – Look for self-assured individuals with a strong, positive self-image.
• Sharp Image – Appearance has a huge impact on professional image. The success of any business encounter begins the second someone lays eyes on your frontline, often long before either party speaks.
• Communication Skills – Seek individuals who enjoy carrying on a conversation, who listen actively and who are concise when needed.
• Motivation – You need people who are hungry to make money and driven by a competitive spirit to be the best.
• Sales Background – While it is helpful, it is not a prerequisite. Sales skills can be taught to anyone who has aptitude, desire, sincerity and integrity.

Defining a theoretical frontline strategy for high profitability is not a difficult thing to do. Getting people to do it, and do it consistently, is.

In order to optimize sales and service performance, you must embrace three primary areas of actionable focus:

• Creating the Right Environment
• Ensuring the Right Personnel Fit
• Executing the Right Action

Changing behavior and sustaining high-performance sales levels cannot happen by training or effective coaching alone. A whole solution that is effective, efficient and systematically implemented over time is required.

Each of the three elements listed above – Environment, Fit and Action – are interdependent. They feed and build on each other as one element supports the success of the other. The Right Environment makes it easier to attract the Right Fit, which in turn makes it easier to produce the Right Action. Only by addressing all three components will your organization reach its full performance potential.

2010 is right around the corner, which means now is a great time to reflect on the success your business has experienced and the challenges you have faced throughout the year.

Ask yourself the following questions:

• Do you have a sound business plan and vision?
• Are your products and services appealing to consumers?
• What do you want to be remembered for?
• What are your customers saying about you?
• Are you capitalizing on all of your business opportunities?
• What image do you want your frontline sales team to project and are they succeeding at this?
• What were your biggest successes in 2009?
• What did you learn from the challenges you faced in 2009?
• Do you have clearly defined goals for 2010 and beyond?

If you believe in your vision and you really want to achieve it, the best time to step up and take a leadership role in making it happen is now. By evaluating your business in an objective fashion and identifying what your customers really want, and not what you think they want, great things will be within your reach!

Ziad Khoury, Founder and President, Frontline Performance Group