Trigger points provide the key to changing your company’s performance levels
Six Steps to Establishing Trigger Points
1. Establish trigger points that relate directly to your company’s Vital Factors, specific measurements of your business’ health.
2. Set no less than five, no more than seven, trigger points for entire company, aligned to your Vital Factors.
3. Have your trigger points reflect “stop gaps,” the minimum thresholds.
4. Base trigger points on a two-month trend (three months, if possible), for example:
• “Cash flow is negative two months in a row.”
• “Revenue misses goal by five percent two months in a row.”
• Backlog drops below $__ amount of dollars two months in a row.”
5. Have triggers that are both lagging and leading. For example, revenues over the past two months would be a lagging indicator of your company’s health while backlogged work would be a leading indicator of your company’s health.
6. Set the target for taking corrective action passed on the number of triggers being pulled.
• Two or three triggers are “pulled” two months in a row; or
• Four triggers are “pulled” within a month.
Note: Your company can also define a “trigger” as a single event — e.g., it could be the loss of a major client.
Lee Froschheiser, president and CEO of Management Actions Programs (MAP), is the co-author of the best-selling book, "Vital Factors, The Secret to Transforming Your Business - And Your Life." For more than 50 years MAP has helped 160,000 leaders and 13,000 organizations create sustainable results using the powerful combination of the MAP Program, business coaching and consulting services. For more information, visit http://www.mapconsulting.comor call 888.834.3040.