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ELS Performance Scorecard Analysis

Performance Scorecard Analysis of the

Entrepreneurial League System® of Central Louisiana
 
Analysis of ELS Performance over Two Year Period:
July 1, 2006 – June 30, 2009
 
This analysis represent the first two years in which the Entrepreneurial League System® of Central Louisiana was in operation – starting on July 1st, 2006 until June 30th, 2009. During this period, 106 entrepreneurs had participated in the system. As of June 30th 2009, there were 68 active clients participating on 6 success teams. Three entrepreneurs were in the Dugout, being coached by the General Manager and 38 (or 36% of the total) were inactive. This analysis includes only those clients who participated in the ELS for at least 2 quarters, since this was the minimum time period data for which we could calculate a change rate. Data from 68 clients have been included in this analysis.
 
            The mission of the Entrepreneurial League System® is to identify and develop entrepreneurial talent in order to generate an ongoing pipeline of highly skilled entrepreneurs capable of building successful companies in sufficient numbers to create wealth and transform the region’s economy. Our goal is to develop entrepreneurs, because entrepreneurs are the source of business and economic growth. The purpose of the analysis which follows is to determine whether or not we have achieved these developmental outcomes, and if so, how well we have done.
 
            As a part of the Social Agreement that all ELS clients sign before they enter the coaching system, clients agree to submit quarterly data on their sales revenue, employees, % of sales outside the region and % of sales outside the U.S. (In turn, we agree to maintain the confidentiality of this data and the anonymity of the clients). This data is collected roughly 30 – 60 days following the end of the quarter (we follow the calendar year for reporting purposes). The last reporting period for the data being analyzed in this report is June 30th, 2009.
 
Methodological Note
 
            Unlike many economic development organizations, we insist on only taking credit for the change in the performance of our clients during the period of their involvement with our coaching system.[1] Therefore, we are evaluating our clients’ change on four measures (sales, employees, % of sales outside the region and % of sales outside of the U.S.) during their participation in the Entrepreneurial League System® of Central Louisiana.
 
The statistical methods used for this analysis were approved by a statistician and selected for their conservative nature[2].
 
  • Participation over 2 year time period varied (68 entrepreneurs had participated for at least one quarter).
  • Client data was used only for those that participated for at least 2 quarters (68 entrepreneurs fit this criteria).
  • First quarter data provided by client while they were already participating in the ELS was used as baseline (data about their financial situation prior to their participation was not consistently available); credit was given to ELS only for increases above that baseline.
  • Change was calculated on a quarter by quarter basis.
  • This method is enormously sensitive to the starting point and can bias the results for that reason in either direction, if revenue is not even throughout the year.
 
Findings:
 
  • The Dollar Growth in Sales Revenue for all entrepreneurs who have participated in the Entrepreneurial League System® of Central Louisiana (for at least two quarters) during its first two years of operation is: $18,068,819.
 
  • The Percentage Increase in Sales Revenue for all participating ELS Clients is: 41%.
 
  • The Growth in number of Employees for ELS Clients over the two year period has been: 198, representing a percentage increase in employment of 33.9%.
 
  • The Revenue Per Employee for the increased sales revenue is $91,256.66 (increase sales revenue divided by the number of increased employees).
 
  • The Increase in Sales Outside of the Region for ELS Clients is: $7,639,332 representing an increase of 213% (over the base). Eighteen (18%) of the total sales revenue for all clients during this period, was earned from sales outside of the region. Twenty-five (25) or 44% of ELS clients were generating at least some Sales Outside of the Region.
 
  • There were no significant Sales Outside of the U.S. by ELS Clients during this period.
 
Movement of ELS Clients in the Pipeline
 
·        Since July 1, 2006, 13 out of 48 or 27% of the active clients have moved up a skill level.
 
o       Eight (8) Single A’s have moved to the Double A team 
 
o       Five (5) Rookies have moved to the Single A team
 
o       Two clients moved 2 skill levels over 2 years – from the Rookie to the AA team
 
Return on Investment Calculations
 
  • For every dollar invested in the ELS coaching program by TRF, our clients increased their sales 16.6 times. ROI: 16.6X
  • The cost per new job created is $5,502.69.
 

[1] It is common practice for economic development organizations to collect data on their client’s sales revenues and number of employees and claim credit for the entire amount, irrespective of their achievements prior to seeking help.
[2] I would like to thank Jim Hurst, an ELS Coach, for his intensive work on this analysis; also thanks to our consulting statistician, Professor Gary McClelland, PhD, Northwestern University for his advice on this analysis.
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