Performance levers are actions you can take to improve your business's results. Learn how to understand performance levers and how they work in your organization. This video explores questions such as: Is pricing a lever that you use? Do you drive volume? How do you use discounts? Can you reduce labor or raw material costs? Can you cut indirect costs like advertising and overhead? What's the relative impact of pulling each of those levers?
- Different businesses have different levers they can pull…to improve performance.…The better you understand which levers you can pull…and what impact they have on the overall performance…of the organization…the more rapidly you can react to market changes…and drive better performance.…What are the main levers people pull at your company?…Are there revenue levers that they pull?…Do they pull the pricing lever?…Are they trying to drive volume?…Do they drive discounting?…What are your biggest costs?…And which levers can you pull there?…Which ones move your cost structure most quickly?…Is it reducing your labor costs?…Reducing raw materials costs?…Looking at indirect costs, like advertising or overhead.…
Perhaps it's some of your operating metrics,…like utilization.…What's the relative impact of pulling each of these levers?…By understanding which one has what impact…it'll help you decide you should pull this one…before you pull that one.…I've worked with a lot of different companies…and each one had different performance levers…
- What business are you in?
- What's your market and who is your competition?
- What problem does your business solve?
- How are your products and services created? What are your pricing and growth strategies?
- How do you measure performance?
With the answers in hand, you can be assured your have the knowledge to make the best decisions for your business.
- Define and explain business acumen.
- Describe different types of growth horizons.
- Identify critical elements of knowing your business.
- Explain the effects of price changes on profits.
- List common growth methods.
- Evaluate your initiative pipeline.
- Define common business terms.
- Assess trends and your competitive environment.