Ninety automatically adds 17 measurables to the Leadership Team Quarterly Scorecard. These are items we have seen extremely important to company growth. This article will explain the definitions of these, and how the numbers you enter can be used throughout the system.
Revenue: Money collected or that you expect to collect for providing services. Revenues (net worth resulting from a transaction) can be found on your Income Statement. (https://www.apaservices.org/)
Gross Profit: Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. (https://www.investopedia.com/) While Gross Profit Margin (GPM) is the ratio of gross profit to revenue (Horngren, 2008).
SG&A: Selling, general and administrative expense (SG&A) is reported on the income statement as the sum of all direct and indirect selling expenses and all general and administrative expenses (G&A) of a company. (https://www.investopedia.com/)
EBITDA: Or Earnings Before Interest, Taxes, Depreciation, and Amortization, is a measure of a company's overall financial performance and is used as an alternative to net income in some circumstances. (https://www.investopedia.com/)
Net Profit: Net profit is the measurement of a company's profit once operating costs, taxes, interest and depreciation have all been subtracted from its total revenues. The term is often referred to as a company's 'bottom line' and may also be described as 'net earnings' or 'net income'. (https://capital.com/)
% of Regrettable Turnover: Regrettable turnover is when an employee’s departure from a company has a negative impact on the team or organization. Measuring regrettable turnover is a more accurate way to measure turnover to determine an organization’s health. (https://humanengineers.com/)
Cash: A current asset account which includes currency, coins, checking accounts, and undeposited checks received from customers. The amounts must be unrestricted. (https://www.accountingcoach.com/)
Net Working Capital: Net working capital is the amount (as opposed to being a ratio) remaining after subtracting a company's total amount of current liabilities from its total amount of current assets. Hence, the formula is: net working capital = current assets minus current liabilities. (Net working capital is also known as working capital.) (https://www.accountingcoach.com/)
Debt: Debt is an amount of money borrowed by one party from another. Debt is used by many corporations and individuals as a method of making large purchases that they could not afford under normal circumstances. (https://www.investopedia.com/)
Equity: The amount of your practice's total assets you actually own (i.e., not financed with debt). Depending on the legal model and ownership of your practice, equity may be referred to as net assets, shareholder's equity, or proprietor's net worth. Equity can be found on your Balance Sheet. (https://www.apaservices.org/)
# of Employees: Net numbers of employees you have in the organization.
These items are also in your default measurables list, but worth separating the description since these are EOS® specific items. Through a series of 20 questions, you get a snapshot of where you are on the journey between 0 and 100 percent in each key component. Want to learn more about the Organizational Checkup?
Org Checkup - Vision: Do you have a clear vision in writing that has been properly communicated and is shared by everyone in the company?
Org Checkup - People: Are all of the people in our organization are the “right people” in the “right seat”?
Org Checkup - Data: Do you have a pulse on the company and each team, tracking the right numbers consistently?
Org Checkup - Issues: Are you addressing issues (unresolved problem, idea, or opportunity) consistently on each team, solving them forever?
Org Checkup - Process: Have you identified each of your Core Processes? Are they documented, followed by all and effective?
Org Checkup - Traction: Does your company have a high level of trust, communication, and accountability on each team? Are you able to take your vision and make it a reality?
NOTE: On your Org Checkup measurables you will not be able to adjust the unit. This is because these items should be used for the 0% - 100% score. (You will see the following notification on these measurables).
Through our sister company ToolsHub, this information can be taken, averaged and provide deeper insight into how your company is performing as a whole.