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Business Intelligence for Custom Integrators

Metrics

When a company manages from a single point of reference, it is not always easy to determine the right priorities and impacts for the business. But in the CoOp, monthly benchmarking against group performance makes any variance from group norms immediately obvious.


Some of the metrics used by the CoOp are the same key metrics used by any mindful company – Sales, GM, Net Profit, Revenue Per Employee.


But our key metric, GPP, is unique to VITAL Mgmt. GPP stands for “Gross Profit per Payroll dollar”, and quantifies the ratio of GP – every company’s most important top-line number – and their single largest expense, Compensation. Optimizing GPP virtually assures exceptional profitability.


Here are the key metrics we manage in these two categories:

  Gross Profit

                 Sales Mix of Equipment, Parts, & Labor

                 Gross Margin for Equipment, Parts, & Labor

Compensation

                 Direct Labor wages (along with subcontractor costs, this is our Cost of Labor)

                 Sales & Administrative Wages

                 Sales Commissions

                 Payroll taxes & benefits

Labor productivity is also an area of management emphasis. In addition to Labor GM, we also track…

                 Labor Utilization (billed hours per tech per week)

                 LRBEE (labor revenues per billable employee)



For a table showing how our member companies performed on key metrics in 2014, click here.