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Tuesday, September 23, 2014

Question

Would you have any information on Key Performance Indicators (KPIs) for Janitorial Services?


Answer

Key Performance Indicators are available for most businesses and most overlap in that they apply to more than one enterprise. A Profit & Loss Statement might be considered as a source of one KPI for any industry in the sense that a loss, no matter how small, indicates a failing business, and a profit shows at least something remaining beyond ‘breakeven”. There is no standard profit, however, that applies to janitorial only any more than there is a standard KPI for the cost per sq. ft. of a janitorial service. Both numbers will vary and our job as management is to get them to the point where we have the contract at the cost level where it is affordable to the client and also profitable for the company.
That is a very simple example how KPIs can assist a manager in making business decisions and shows how we must be attentive to the details of our operations. If we don’t have the numbers soundly based on fact, we will be guessing and that may prove dangerous.
So, that is an example of how these business facts are used. There are, however, dozens, perhaps hundreds, of KPIs that apply to every aspect of a business from turnover to take home. To get an idea of what you may wish to measure and compare do an Internet search and look at sites such as www.ap-institute.com/Key%20Performance%20Indicators.html.
Accounting alone has numerous ratios to compare sales with production costs and most everything else. Choose a few of these, and others that seem valuable to you and work with those.
A word of caution. We can get so tied up with this sort of detail management that the tools become our bosses and we have time for little else but measuring and comparing. Don’t let that happen.
Developing sound production rates, setting sensible employee wages, establishing basic job costs, and reducing employee turnover are all part of any business. To be of worth the actual numbers have to reflect your operation and not those of others who have dissimilar circumstances.

Lynn E. Krafft, ICAN/ATEX Editor
lekrafft@juno.com