As a business owner, you should have dashboard reporting in order to develop key performance metrics that help you know if your plan is on target. Three to five is ideal, but anything more tends to be confusing and can distract you from your priorities.
In addition to the key performance metrics of a business, department managers have their own set of metrics to track. For example, marketing and sales teams will be concentrating on the number of leads generated, conversion rates and the number of products sold. A customer service team will be tracking retention rate and customer satisfaction metrics. An operations team will be measuring number of orders filled, quality of fulfilment, or delivery time. All of these metrics are important and can roll up to how well a business will achieve a specific goal.
Financial goals are essential to any business, however every team within a business will have their own goals. All of these sub-goals are what need attention in order to be successful in achieving your financial goal.
If your goal is to keep goals and metrics simple, then your goals can focus on four areas: financial, customer, business processes, and skills/training.
Translating Strategy into Action
Developing and debating an effective strategy is the heavy lifting in strategic planning. Now it’s time to tackle the details. Managing, monitoring and measuring action items are vital to execution. What is measured can be managed, and what is managed can be improved.
Over time, this process enables businesses to become more accurate in predicting and measuring their strategy execution.
Real-Time Planning and Execution
Once a strategic plan is implemented, it needs to be regularly updated and adjusted to make sure it remains relevant to the changing marketing conditions. It’s pointless to create an annual plan and let it get stale for a year. The purpose of developing a plan in the first place is to create a guideline for decisions to achieve your business vision and goals. The primary tool for keeping your plan updated is the 90 day review.
The 90 day review is designed to discuss how well everyone is working together to achieve the strategic goals of the business. This type of review has several other benefits including improved alignment across teams, creating a shared understanding of factors influencing the business, and of course organisational learning and continuous improvement.
Here are a few examples to guide the 90 day review:
– How well did the company perform against the top 3-5 key performance metrics?
– What key factors influenced the results?
– How well did individual departments perform against target metrics?
– What initiatives need to be adjusted based on the results?
– In what ways can you improve alignment across teams?
– What market, industry and/or competitive factors have changed that you need to be aware of?
– Are you doing an effective job of listening to the ideas or concerns of customers? What have you learned and how can you be more responsive?
– Are there opportunities you need to explore to develop new products or services?
– Is there congruency between the internal brand and external brand?
– Are you balancing both short-term and long-term goals?
As your team gets more practice and rhythm implementing these types of meetings, the dialogue will improve. And so will your results.
In conclusion, translating business objectives into measurable marketing means firstly constructing a list of business objectives, and then tying them to measurable goals and identifying the aspects that can be measured using web analytics.
Once you have a list of measurable goals, construct analytics goals by identifying the component of the goal that is related to measurement.
Lastly, take your analysis a step further by identifying the component of the business goal that relates to action, and come up with actionable insights.