Happy Sunday Everyone.
Had a great coaching call 2 weeks ago with Josh. He brought up the concept of us understanding our volatility index, which is your best month divided by your worst month. For me in 2015, my worst month was 9 units for 5.3 mill and my best month was 27 units for 19.6 mill. Unit volatility index is 300%, volume volatility index is 370%. In all honesty, when I put this in writing, its embarrassing. Can I make excuses and say these two are outliers and my avg was something in the middle, yes, but in reality we need to understand our businesses more. We need to focus on our numbers more. The other students on my call had similar numbers. The smarter we run our business, the smaller that volatility index is going to be. What causes a volatility index to be higher….lead count, closing ratios, team volatility…..for better or for worse, everything can get broken down to our people, our process, and our product (Stolen from The Profit TV show).
1. Do we have the right people in the right positions, and do we have the right number of team members?
2. Do we have a process that creates raving fan service for our clients and referral partners all the time?
3. Do we have a product (s) that serve our clients’ needs?
If I break down last year, all 3 factors of people/process/product affected our numbers for better, and in some cases for worse. Good news is I believe the key factor now for us is dialing in the process. I believe I have the right people, and by and large, have the right product.
Numbers speak the truth for better and for worse and take the emotions out of the ups and downs of good months and bad months.
Challenge to all of you:
1. What is your volatility index?
2. Review with your teams 3 things that caused the index to be higher than you wanted it.
3. What are 3 things you need to do to bring the volatility index down.
I guarantee you any business you look at makes more money and has a better business when their volatility index is low.
As a final point, we, as the leaders of our teams, are 100% for determining what our volatility index is.