Editor’s Note: This post was originally published in February 2014 and has been updated for accuracy and comprehensiveness.
Measuring the right KPIs (key performance indicators) is crucial for agency owners to understand their firm’s performance and find out what areas require attention. There are literally dozens of KPIs to grow and improve your creative agency, but it is important to identify what performance indicators you should evaluate and track on a daily basis.
While many industry thought leaders recommend looking at your balance sheet, financial statements, or adjusted gross income, it’s worthwhile to dig a little deeper to better identify the reasons for strong or poor performance.
Are you making the most of your team? Do you know which projects are earning you a profit? I’ve chosen 4 KPIs, easily accessible in Function Point, that address the productivity and efficiency of your people and of your agency as a whole:
- Utilization Rate
- Timesheet Summary
- Jobs by Company Summary
- Jobs Summary
Below is a screenshot of Function Point’s KPI dashboard displaying how your agency is performing in a specific time frame.
1. Utilization Summary
A great way to see your staff utilization rates is by creating a dashboard with the utilization summary, which shows the percentage utilization by employee, by department or by the entire team. It will help you manage time tracked to billable services in your creative studio versus actuals. Function Point’s utilization summary is a great representation of your staff utilization rate.
In the example above we can see a 63% utilization rate—calculated by dividing actual billable by target billable hours.
2. Timesheet Summary
Use the timesheet summary to compare billable and non-billable timesheets. Users can adjust the date range for a specific period as well as select a staff member or the entire team. Another important item in the timesheet summary is the staff target hours for the staff selected.
3. Jobs by Company Summary
Here is a great opportunity to pick some of your most important clients and look at the jobs you are completing for them. The “jobs by company summary” KPI shows how many jobs your ad agency is currently working on and most importantly, if the jobs are on budget or over budget.
I’ve seen many project and traffic managers using this tool on a daily basis so they know exactly what is going on with each job in their agency.
4. Jobs Summary
The job summary is a quick snapshot of how many jobs you have on the go, the number of jobs that are over budget, late or under budget. If you are an agency owner, a partner or a senior manager, you should definitely have the jobs summary KPI on your dashboard.
All in One Place
A project management system like Function Point can help keep an accurate track of your agency’s KPIs and can pull performance reports over a customized date range. Real-time data on your KPIs and comparisons over estimated and actual job resources can be made visible on FP’s dashboard.
What KPIs do you currently track in your creative agency on a daily basis? Do you use a workflow management system that allows you to see these KPIs in one simple dashboard? For more information, see our blog on how KPIs can help your creative agency to thrive.
Looking for a little more insight into how to guarantee your agency’s long-term profitability? Download the Profitability Made Easy guide for helpful tips on how to keep your agency thriving.
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This article was written by former Function Point team member, Leonardo Maia.