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Business Monitoring Idea – 1

November 15th, 2010 · 2 Comments

An idea I have implemented recently in NetCore for some of the business lines is the concept of Projected Score and Required Run Rate. It borrows from the cricket ODI and T-20 matches. An example will help explain.

Let’s say in the first 10 days of the month, we have generated Rs 15L in revenue. Then, the Projected Score for the month is Rs 45L. Now, if the target for the month was 60L, then the Required Run Rate to achieve that is (60-15)/20 days left = Rs 2.25L, vs a Current Run Rate of 15L/10 = 1.5L.

These numbers monitored daily give more predictability to what one can achieve in the month, and also shows the gap between target and current run rate. Based on that, one also can get an idea of the push required to achieve the target.

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2 responses so far ↓

  • 1 Aditya // Nov 15, 2010 at 3:37 pm

    I think tracking the right metrics regularly for a business is very important.

    Along with the points you mentioned, it can also help in keeping up the motivation levels. Nothing beats the feeling of having made another sale to the customer, and an incremental step taken towards improving the bottom line. An early morning message saying ‘We acquired 4 more customers yesterday’ can literally work wonders to the morale.

    Check this link that has details on how an entrepreneur (Patrick McKenzie) hacked together an awesome digital dashboard for his business stats.

    Having such a dashboard running live in the office where everyone can see it, could be really useful.
    http://www.bingocardcreator.com/articles/dashboard-on-a-shoestring.htm

  • 2 Akshar // Nov 16, 2010 at 4:58 pm

    I remember long back you had written about your habit of writing notes in the notebook.
    After some months I realised that I need something like that desperately because of my short attention span and bad short term memory.

    A year back I came across Humphry’s “Personal Software Process” and with little modifications the process worked real well for my day to day tasks. From a lazy, unorganized individual I am about to turn into a obsessively disciplined freak.

    I remembered all of this because it involves calculating work done/ pending work and / work rate on almost daily basis for my regular tasks such as programming, homework, reading etc.

    It worked real well.

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