FUTURE MILLIONAIRE TEAM RETREAT
SEPTEMBER 13-16, 2011
PORT AVENTURA-SPAIN
HERBALIFE
THE IMPACT AND IMPORTANCE OF BUSINESS METRICS
Principles Ethics & Morals
Image & Self Esteem
Product Strategy
Training & Support System
Producers Leaders
Calendar of Events & Promotions Recognition
WHAT IF:
You would have a possibility to check that, what you do is good or you can do much better?
• You would have a way to see exactly what is keeping you from growth?
WHAT IF:
•You would have the Royalty formula to plan your growth?
• Know exactly what is going on in your group and how to set the right trend?
WELCOME TO THE WORLD OF NUMBERS!!!
OUR GOAL TODAY
• Is not to talk about BizWorks ☺
• To talk about the importance of numbers
• To see which parameters, we found, are very important to know and monitor
• You can’t be really serious in the business without totally looking at numbers
• You don’t need to be smart to understand numbers
• Numbers are not boring once you get how they can help
Introducing Mr. Plum Jam
How to make a lot of good jam?
• 1. We need plums – to pick up the right ones
• 2. We need to process them correctly:
– Quickly so they will not spoil – Wisely so we use as much as possible
– Follow the recipe so is tasteful
– And keep it right so we can enjoy it longer
The Royalty Formula: RO = Number SP X VP X 5%
2 IMPORTANT TYPES OF NUMBERS
• Structure of the business
• Quality of the process
or
QUANTITY Vs QUALITY
Structure of the business
- The structure of your business is helping to see what are you doing:
1. Total number of SV
Or
you need to have plums in order to make some jam
Structure of the business
2. Number of SV / line
3. Volume / line 4. Each leaders group % in the RO
- Visualization makes miracles
• DRAW THE PICTURE OF YOUR GROUP
YOU NEED TO HAVE:
• Bigger nr. of SV each down level
• Constant average volume/ line
• No “majority” group in your Royalties
The quality numbers
• Total volume of organization or total Nr. of SV tells nothing about the quality of the
process
Why we look for better quality of the process?
• How much plums we are using from those picked and how much jam are we making from 1 kg plums?
Why we look for better quality of the process?
• It is more EFFICIENT
• Less waste on the market
What are the quality indicators?
- % of productive SV
- Average volume / SV
- % of volume coming from new SV qualifications
- Retention
% of Supervisors producing volume
• How much plums I am using from those picked?
• You need to bring less new SV if more of existing produce volume
We have today an average of 80% of SV producing volume
Average volume/ SV
•How much jam am I making out of 1 kg of plums?
Average volume / Supervisor
• Helps achieve bigger volume with less SV
• Good average in our experience 1400- 1700 VP in “non promotion” months
• Ex:
• 100SVX1400VP=140000OV • 100SVX800VP=80000OV
Why the % of producing SV or average can be low?
• “Premature” SV qualification – new MP opportunities
• Training system for DS and SV level – how practical and daily/weekly plan oriented
• Using events and healthy promotions
- Average volume / Supervisor and % of producing focus is one of the biggest growth source within our power and influence
% of volume coming from SV qualification
- Am I picking more plums than I can process?
- Very “tricky” volume increase
- Not sustainable
- Is good to be no more than 20% of the volume
- You become dependent of it and produce a lot of waste on the market
Retention
• How do I keep the jam I made??
• The new SV growth and Retention
- The Royalty formula indicators:
RO = Nr. SV X VP X 5%
What is your “jam” production?
• 100SV
• 50SV–producing–50%productivity • Average1000VP
• 50X1000= 50000 OVP
• You will need extra 100 SV to double the volume
• Or
• Work on productivity and average volume as well
• Numbers reflect what EXACTLY is happening in your group now
• What are the exact steps you need to do
• Help you monitor the effectiveness of the implemented plan
LOOK AT YOUR NUMBERS AND YOU CAN GET BETTER RESULTS EACH DAY