September 6, 2023
12 KPIs Every Community Association Management Business Should Know: Operational Efficiency
Greetings! I'm Adam McCombs, the Chief Product Officer at Vantaca. I'm thrilled to introduce our comprehensive guide to the 12 essential KPIs every Community Association Management business should know. In this series of blog posts, we'll delve into each of the five crucial categories outlined in our eBook, which provide a solid foundation for achieving and maintaining high performance levels. Today, we'll be focusing on operational effectiveness.
Operational Effectiveness: Driving Efficiency and Productivity
Operational effectiveness is a cornerstone of any successful Community Association Management (CAM) business. To excel in this area, it's crucial to understand the difference between efficiency and productivity. While efficiency focuses on doing the same with less, productivity revolves around doing more with the same resources.
As a CAM business, you want to not only ensure you're efficient but also strive for high productivity. As a recent Harvard Business Review study has stated, great companies obsess over productivity because it's the key to lasting success.
1. Employee Productivity
One of the essential KPIs in this category is employee productivity. It's essential to measure the output produced by your team members over a given time frame. Using Vantaca IQ, you can analyze trends in hourly production and identify areas for improvement or acknowledge outstanding performance. The formula for calculating employee productivity is simple: Output divided by Time.
By consistently monitoring and optimizing employee productivity, you can enhance operational effectiveness, ensuring that your workforce is achieving the maximum results with the resources at hand.
2. Average Time to Close Work Orders
Another crucial KPI in operational effectiveness is the average time it takes to close work orders. This metric helps you understand how efficiently your team is handling maintenance and service requests from community members. To calculate this KPI, divide the total time spent on work orders by the number of work orders completed.
For instance, if your team spent a total of 30 hours closing 20 work orders, the average time to close a work order would be approximately 1.5 hours. Monitoring this KPI allows you to set realistic expectations for response times and improve your service quality.
3. Scale: Expanding Your Operations Efficiently
Scale is an important aspect of operational effectiveness. It refers to your CAM company's ability to expand its operations and increase its reach while maintaining efficiency. Two essential methods for measuring scale are:
Number of Communities per Employee: This KPI is calculated by dividing the total number of communities your company manages by the number of employees. It provides insights into how efficiently your team can handle a growing portfolio of communities.
Number of Doors per Employee: Similarly, you can measure scale by dividing the total number of doors managed by your company by the number of employees. This metric helps gauge your company's capacity to handle an increasing workload.
By monitoring these metrics, you can ensure that your CAM business is scaling in a controlled and efficient manner, avoiding potential operational bottlenecks.
In our next video, we will delve into the category of sales and growth.
Stay tuned to learn more about these essential KPIs that will help your Community Association Management business thrive. We look forward to seeing you next time!
Watch the Full Video HERE
Read our last blog post HERE