...101 Selecting the Right Marketing Metrics 1. The Lowdown ----------------------------------------------------------------------------------Marketing metrics can serve as an important means of assessing and communicating marketing performance, yet many marketers struggle to determine which metrics are the “right” ones to deploy. One factor that makes metrics selection particularly challenging is that, unlike other business functions, there is no generally accepted set of metrics for marketing. Adding to the metrics selection challenge is the vast number of possible marketing metrics that have been identified over the past few years—it’s really no wonder that marketing metrics selection can appear so daunting. Despite these obstacles, many marketing organizations have successfully developed and implemented effective marketing metrics programs, by following the focused, incremental, and iterative process outlined below. 2. Why do I need to know about it? ----------------------------------------------------------------------------------More than ever senior management is holding marketing accountable for setting and achieving specific financial objectives. A key component to marketing success has become the ability to credibly demonstrate the impact of marketing initiatives on key financial outcomes, such as incremental sales, customers, and margin. Metrics that are perceived as objective, organizationally relevant, and numerically credible can be a powerful “story telling”...
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...McDonald’s CSS was established in1996 in response to the business’ increased focus on: • lowering cost of services • reducing restaurant manager administrative functions • providing “one-stop shop” for services • supporting key business initiatives Organizational functions are divided between offices in Oak Brook, IL and Columbus, OH. Three focused areas of products and services that we provide are: employee services and real estate & restaurant accounting. CSS consists of 280 employees, but will be growing to approximately 340 with the creation of the North America Shared Services Organization. NASS consists of both Corporate and Canada’s shared services. This new organization provides the blueprint for other regions worldwide to create shareholder value by using common metrics, service level agreements, standard processes and a governance structure supporting the shared services model. The development of a three year strategic plan for NASS focuses on automation, standardization and consolidation along with annual productivity targets. The BPO initiative entered into in 2003 and 2005 created uncertainty, but we overcame this by creating critical success factors. We established an analysis team, set clear scoring criteria, made sure our internal relationships were strong, used a third party advisor to give the process structure and discipline and focused on honest and open communication. After realizing these critical factors, we created an internal solution consisting...
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...educate them on what drives the business. When a management tool becomes popular, it’s only logical to question whether it’s a fad or the future. One performance measurement tool—the balanced scorecard (BSC)—has broad appeal. Approximately 50% of Fortune 1,000 companies in North America and about 40% in Europe use a version of the BSC, according to a recent survey by Bain & Co. The number of software and consulting firms currently providing BSC-related products and services supports these statistics. But do companies think the BSC is here to stay? Philips Electronics does. This worldwide conglomerate has gathered its more than 250,000 employees in 150 countries around the card because it sees this tool as the future—not a trendy tool. The key benefit for Philips: Management can streamline the complicated process of running a complex international company with diverse product lines and divisions. Here’s how it cascades throughout the organization. The drive to implement the balanced scorecard at Philips Electronics came from the top down—as a directive from the Board of Management in Europe to all Philips divisions and companies worldwide. The directive went to each of the companies and their quality departments, with the effort in the medical division headed by the Quality Steering Committee that reports to the president of Philips Medical Systems. (Later we’ll look specifically at the experiences of the Philips Medical Systems North America (PMSNA).) Philips Electronics has...
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...while large, is filled with several formidable competitors such as Pacific Investment Management Company (PIMCO) and Oaktree Capital Management. Similarly, Activision fights for market share in the gaming industry, which is growing increasing crowded and experiencing shifting trends. To further grow in these industries, both companies need to innovate and take market share away from competitors. As both companies continue to innovate and expand, both company’s growth strategies will be further analyzed. An investment fund’s success is largely measured by three key metrics: Assets Under Management (AUM), fund return relative to its benchmark, and fund ratings. With $180B in AUM, TCW is one of the largest players in the fixed income investment management industry. The company has a strong history of outperforming its benchmark and has garnered high ratings from several rating agencies. However, with the number of investment firms increasing, the three key metrics are becoming increasingly difficult to not only grow, but to maintain as well. The example often given to explain the difficulty is the distinction between a “winner’s game” and a “loser’s game” in tennis. For professional tennis players, wining points entails outplaying the opponent and hitting winners, thereby making their game a winner’s game. However, for the average tennis player, winning points is a loser’s game as players typically focus on keeping the ball in play and waiting for their opponents to make an unforced...
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...Selecting KPIs Selecting the right metric is an art more than a science (Eckerson, 2005). The essential objective in selecting KPIs is to identify the measure that best communicates the meaning of a strategy (Kaplan & Norton, 1996). Each KPI measures the achievement of a certain strategic objective; and therefore managers should (1) understand very well the strategic objective and (2) select the KPI carefully to translate the achievement of this particular strategic objective. If managers do not understand the strategy or fail to select the right measure, management of the company may be misled by not measuring what needs to be measured. As Kaplan and Norton (1996) indicated, the art of defining the KPIs rests in the performance drivers (leading indicators) that enable the outcome KPIs (lagging indicators) to be achieved. Leading indicators are useful to have as they give the time to influence the outcomes KPI (Eckerson, 2005). There is a third type of KPI that can be selected which is the diagnostic indicator. The diagnostic indicators are not leading or lagging indicators; they measure the health of the operations just like measuring the human temperature that should always be under a certain level. While selecting the leading indicators for a certain outcome KPI, managers should do a brainstorm session to understand what drives the performance of this specific outcome KPI (lagging indicator). Good mix of KPIs should be (1) linked and aligned with strategic objectives...
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...Armstrong World Industries Business Systems Plan Phase 5 Individual Project 2013 Information Technology Management Table of Contents Business System Planning (Week 1) Introduction 4 Identify how the following critical success factors will be addressed by case study 5 Governance 5 Business plan alignment 6 Process improvement 6 Resource optimization 6 Operating excellence 7 Identify how the following critical success factors will be addressed by case study 7 Business management issues 7 Strategic and competitive issues 7 Planning and implementation concerns 8 Operational items 8 Identify how the variables defined by Strassmann's Model will be measured 8 Efficiency 8 Effectiveness 8 Competitivness 8 Profitability 8 Strategic Information Systems Assessment (Week 2) Create an analysis of strengths, weaknesses, opportunities and threats for case study 9 Case study continued 9 SWOT analysis of case study 10 SWOT analysis continued 11 12 13 Create an assessment of the forces that are presently governing competition for case study 14 Using Wiseman’s Framework of Strategy Development define the strategic thrusts and advantages 15 Information Systems Business Case (Week 3) Critical success factors for IT Manager 16 Continued. 17 General stratgy for IT goals and objectives of the case study. 18 General strategy on how IT department will support the goals and objectives of the case study 19 Information Technology...
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...Aronson Security Group asked us to comment on four questions related to metrics. Since creating, measuring and accelerating value is our focus, we were happy to oblige. Here were the four questions: * How do you determine what to formally measure? * How do you collect, understand and report on those metrics? * What value does security get from investing in metrics? * What value does the organization get from investing in metrics? What is Performance-Based security? Measuring security performance means assessing business and security results to: (1) determine how effective the strategies and operations are and (2) make changes to address shortfalls and other problems. There are different methods and criteria for measuring performance. However, the common strand through each is the ability to measure the results generated by core business processes, using specific metrics. For each process, there are many possible metrics. Why should Security Organization’s Measure? * Improvement: Understand your strengths and your weaknesses. Show continuous improvement over time. * Planning and forecasting: Performance metrics creates a progress trend line allowing organizations to not only be clear on their current performance position but also forecast their future condition based on the data * Technology Lifecycle Management: Performance metrics are non-existent for the up-time metrics of the hardware and software that security uses. But this ‘viability index’...
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...Premium’, in 2008 (now also translated in Romanian, soon to be published). Over the years many consulting or educational organizations have tried to add to the Balanced Scorecard initial concepts, in some cases attempting to build “a better mouse trap”, but few succeeded to bring any significant theoretical or practical value to the BSC framework and implementation methodology, developed continuously by Drs. Kaplan and Norton and by their team at Palladium and based on thousands of implementation projects in most industries, geographies worldwide and organization sizes, in both public and private sectors. Four Perspectives of Balance Score Card The balanced scorecard suggests that we view the organisation from 4 perspectives, and to develop metrics, collect data and analyse it relative to each of these perspectives: • The Learning and Growth Perspective • The Business Process Perspective • The Customer...
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...are Capital Metrics? A Review of Human Capital Metrics Human Resource Metrics has become crucial for Balanced Scorecards and other performance measurement systems. This is a result of the need for effective management over human resource capital. Senior management often fails to comprehend the value of human resources within the organization. Thus, there is too often little emphasis on human resource management within a balanced scorecard. As a result, it is essential to demonstrate the value of human resource capital to executive management. Human Capital Metrics represent the activities a company engages in to fully access the value of their employees. All companies have employees, from CEO’s to receptionists; knowing how well each employee does his or her job is critical to remaining competitive. A scorecard measures financial, business, workforce, and customer tasks completed by employees. These individual metrics allow a company to cumulatively put information together on each employee. The holistic perspective of each activity on the human capital scorecard typically starts singularly and is reviewed all together once it is complete. The first step for human resource management to make is to understand value-based and financial metrics. Once there is an understanding of value, then a company can move into developing a set of metrics that recognizes the relationship between human resources and finance. The primary focus in human Capital Metrics is on people...
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...Project Metrics and Performance Telecommuting Expansion Xemba Translations 47254 Lake Front Way Bellevue, Washington September 1 The metrics that best work to measure Xemba Translations performance on this project is project diagnostic metrics. While not all risks of a project can be mitigated, using this objective data based on these metrics will make a huge difference to mitigate risk. Using diagnostic project metrics is like using a thermometer to assess the projects current status. This can help eliminate or mitigate the issue before it becomes unmanageable at the close of the project. This can help avoid the, should have, could have, would have moments that may happen once the project closes and gets reviewed from a retrospective project metric. With the diagnostic project metric when an issue does arise a contingency plan can be created if there is a trend toward a major risk as well. Diagnostic project metrics use current project statistics to gage where the project stands throughout the work of the project. This allows the project manager the ability to make better decisions along the route of the project to mitigate risk. Metrics that help improve the decision making, help aid to lower the risk of any project. Diagnostic metrics are comparative measures. The metrics compare a baseline (usually set at time of planning the project) to current project actuals. The actuals are compared to an earned value figure that is determined by where the project should be...
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...this week I chose, A Formula for Success: Integrating Risk with Strategy Setting and Performance Management, from the Ottawa University web site http://eds.a.ebscohost.com.lib.ottawa.edu/. In this article, author Jim DeLoach describes and details in a broad sense, the benefits and reasons for strategy, risk and management. DeLoach states, “The process of integrating strategy setting and risk assessment provides an ideal opportunity for interaction between executive management and the entire board. Strategy setting articulates strategic aspirations and initiatives, and defines the differentiating capabilities and infrastructure needed to execute. Risk assessment identifies and sources key risks inherent in the strategy, understands critical assumptions underlying the strategy, and sustains the risk-appetite dialogue” (2014). Risk and performance management begin to come together as quality inputs and metrics become coexistent. DeLoach ads, “The discipline of establishing key performance indicators and key risk indicators by integrating risk management and performance management is intended to improve the mix of lead indicators included in the balanced scorecard used to run the business. For example, within certain organizations, accumulated deferred maintenance might be a lead indicator of emerging environmental, health, and safety risks.” Key metrics and targets can then be established along with business and financial plans which integrate key activities at all levels. Once...
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...SUMMARY Business Must Adopt A Measurement Framework For Success. The rapid evolution of the web and digital media over the past decade illustrates that we operate in an environment that is constantly in flux. Technologies emerge, communication channels open and consumer behaviors adapt. These changes are apparent in the ways in which consumers interact with marketers and their brands as well as the ways in which consumers empower one another. Yet, as consumer connections, networks and relationships spider to the edges of the globe, marketers take their messages to social media channels with reckless abandon. Organizations that view social marketing as experimental forays jeopardize the relationships they have with their customers because consumers do not regard their actions as frivolous endeavors. They’re making decisions based on the new information they learn from their networks and using that knowledge to take actions and influence others. These actions leave indelible impressions upon brands and the consumers that interact with them. In an effort to help clients better understand the value of these emerging channels on their business, Web Analytics Demystified and Altimeter Group interviewed dozens of companies who are active participants in social media. Through our research we found that: • Many companies are stumbling blindly into social media marketing, largely without measurement in place. • A pragmatic approach using metrics derived from sound business objectives minimizes confusion...
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...Ulhaque Table of Contents Introduction 2 About Ganache 2 List of Products 2 Quality Control 2 Performance Measurement 3 Key Performance Indicator (KPI) 3 How Can Ganache Benefit From KPI Technique 3 1) Financial KPIs 4 2) Manufacturing KPIs 5 3) Customer Satisfaction 6 Performance Dashboards 6 Conclusion 7 Key Performance Indicators for Supporting Decision Making Process in Make-to-Order Manufacturing 8 Useful Key Performance Indicators for Maintenance 9 Investigation of how to implement successful KPIs for organizations 10 ROLE AND IMPORTANCE OF KEY PERFORMANCE INDICATORS MEASUREMENT 11 Seven Common KPIs for Production Monitoring Using Visual Management to Drive Productivity 12 Introduction At the time being we are at the final phases of building a new plant for our family business which is called "Ganache", this will be a major change for Ganache and its operation where it is shifting from having a small lab to a huge plant. The purpose of this planet is to have a solid base for local and regional expansions. In order for us as a management team to stay abreast with this new business model; we should increase our standards and implement some useful engineering and business techniques to monitor and evaluate our work effectively. Since our business is considered as a food business, I have selected Key Performance Indicators for Quality Control as a topic for this assignment because I believe that KPI technique is one of the most useful...
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...DSMM Case: Air France Internet Marketing Name | Anushree Bishnoi | PG ID | 61410571 | 1. What are the metrics you would use to measure the success of each of the campaign that Air France has run? The key metrics that I would use for analyzing the success of each of the campaign that Air France has run are: 1. Return on Ad (ROA): ROA will hold as one the most important parameter in measuring the success of the campaign. In case the ROA is high, we will know how much would be the return on the investment (in the case it’s the charges paid for the click) of the advertisement. This will help us decide, whether we can invest in that publisher or not. 2. Rate of conversion: As can be seen from the doubleclick report, we can analyze the conversion rate to find the probability of bookings made through the volume of bookings columns. This is again a very important parameter in finding out which publisher will give you the highest rate of conversion. 3. Cost per click (CPC): The above two metrics is more to do with the result and the return on investment, but we should also keep track of the cost of our investment. I believe CPC will capture a lot of information related to it. For a publisher which gives high ROA, but also gives high CPC, we must look to bring down the cost associated with the click. 4. Click through Rate (CTR): CTR will give us the ratio of no. of clicks achieved through the number of impressions. In a case where CTR is very low, we will...
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...these areas were caught in the event and were unsure as how best to respond and what action to take. This report presents the findings from the investigation into the observed problem of the lack of awareness of bushfire hazards and risks amongst visitors of regional Victoria. The report describes how the Group has come to a better understanding of the problem through the use of various Design Thinking and Lean UX tools and approaches. The application of the tools has identified invaluable insights into the customer’s needs which provided the Group with the confidence to better define the problem statement. The process also assisted in the identification of key metrics that the Group can use to drive an optimum problem-solution fit. These metrics shall be refined and used to measure the solution’s success. 2 TABLE OF CONTENTS Executive Summary………………………………………………………………………………………………………….2 1....
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