On the first Friday of each month I sit down with the team and talk about year to date and month to date numbers. Most agencies that do this and talk about revenue from a high level and maybe through in client wins and losses. We do those as well but that’s a small part of the 30 minute meeting. There are two numbers we start and end each meeting with:
Revenue / Employee
Understating what this number is as you scale up and down with clients and employees helps everyone understand where you sit as a company. Similar to retail that measures revenue / SQF, we want to understand what is changing this number. I want to motive each person in the company to help increase this number whether that is helping sign a new client, increase revenue from a current client or finding a way to be more effective on a current/future project.
Profit / Employee
More important then your revenue is your profit. Some might measure this by looking at salaries for employees and subtracting revenue from that amount to see how profitable they are. We take it one step more and look at rent, technology costs, salary and any cost that is associated with running the company. We back that out of revenue and divided it by our employees. That’s our true profit / employee.
Both numbers are on a spreadsheet that everyone in the company has access to 24/7. We also put revenue broken down by client for each month of the year. That way everyone understands who pays us what each month. That way if anyone thinks we are investing to much into any one client then they can say something. Beyond the numbers, I talk vision and where we want to take the company next year. We have a couple cool ideas that could reshape how we work.