How do you set a service target that still means something on the 20th?

KPI Sight sets default gross targets at last year plus 10%, and there are other factors that fine tune that goal. Start from what the store actually did, and adjust for what has changed. A target built that way holds up on the 20th because you can point to which input is off: fewer ROs than planned, less gross on each one, or a slow week in the middle.

The inputs

Three inputs go into a monthly customer pay labour gross target, and each one answers a question a manager will be asked later.

1. Start with the same month last year, and add a reasonable stretch, say 10%. Seasonality in service is real; March and September do not look like January, and a target that ignores that is wrong before the month starts. If last October produced $100k, a reasonable baseline target for this October is $110k.
2. Count the workdays. A 21 workday month cannot produce what a 23 workday month did, so set the target per workday and multiply up. If October last year had 23 workdays and this year has 21, the baseline becomes $110k x 21 / 23 = $100.4k.
3. Then list what has changed: advisor and technician headcount, a door rate change, a new express lane. Each one moves the number in a direction you can name out loud. If the door rate has gone up 10% since last October, the target becomes $110.4k.

The reachability check

KPI Sight handles this math automatically, so all you need to do is consider whether the output is reasonable. Setting a monthly target and a labour gross per RO target trickles down to the number of ROs required each day to hit the goal. Continuing the example, the plan is an October target of $110.4k over 21 working days, which means $110.4k / 21 = $5,257 of gross per day. At a target of $308 gross per RO, that means $5,257 / $308 = 17.07 ROs a day.

If the store has never had an October above 15 ROs a day, one of three things has to change:

1. A campaign to lift traffic by about 15%, or
2. The expected gross per RO (at $350 per RO the store needs 15 a day), or
3. The monthly target.

When the target was the thing that was wrong

Sometimes the 20th shows the target was off rather than the store. A technician left on the 3rd. A storm closed the store for two days. This is the payoff for building from named inputs: the input that changed is the one to adjust, and the rest of the month is measured against the adjusted number instead of a number everyone has quietly given up on. Reading the projection against the target through the month is the subject of projecting month-end gross, and what to do when the store is behind is in acting before month end.

How KPI Sight does it

KPI Sight lets you set targets for service and parts, broken down by pay type, then tracks results against them all month, including the projected month end as a percent of target. We show you every day where to drive focus to hit target, and what is needed to get back on track.