Season 4, Episode 6: MEASURING TO SEE IF YOUR STRATEGY WORKS
Play • 26 min

Let's talk about benchmarks. Better known as KPI's. These are the 10 or so metrics that will be used to track progress. We also talk about how to talk strategy to team members so they can execute on the HOW. 

STEP 1 THE LANGUAGE FOR SHARING STRATEGY WITH OPERATIONS

  1. COMMUNICATE GOALS AND MEASURES to your team leaders and/or team members
  2. TURN STRATEGY INTO TARGETS. You want to set the goals that convert the strategic objectives into specific performance targets.
  3. THINK BIG PICTURE IMPROVEMENTS.  Strategies help the business improve the way it operates and set new goals, as opposed to goals that simply improve or fix what the company is already doing.
  4. WHAT IS AN EFFECTIVE GOAL. It states the what, when, how, and who. They are SPECIFICALLY measurable.
  5. SHORT TERM ACTION ITEMS. They should address what you need to do in the short term (1-2 years) to achieve your strategic objectives.
  6. WHAT IS A RESULTS STATEMENT? These are outcome statements expressing a result expected in the organization. They are issued annually. They are specific, measurable, attainable, responsible and time bound. 

STEP 2 SELECT THE RIGHT KPI’s

  1. WHAT IS A KPI Metrics that track and measure an organization’s progress toward its strategic objectives. KPIs tell a story about how well a company is performing.
  2. INDUSTRY KPI As a Senior Executive at Macy’s, when working at the individual store level, each of the departments had their % increase in sales measured against the following: the store's performance. The region's performance. The corporate's performance. The Goal…always to outperform any of the above metrics.
  3. KPI= BETTER DECISIONS   Leverage these metrics to pivot.
  4. KPI= ARE OBJECTIVES BEING MET? A KPI measures a company’s performance against its primary objectives. High-level KPIs focus on a company’s overall performance, while lower-level KPIs focus on departmental processes, products, and productivity.
  5. 10 KPIS are sufficient
  6. KINDS OF KPIS.
  • Revenue and net profit margin.
  • Customers- satisfaction or customer churn.
  • Operations- time to market and average order fulfillment.
  • Talent Management metrics- workforce retention and turnover.
  • Leading-predict what may happen in the future.
  • Lagging-reflect past results, measuring the aftermath of actions.

STEP 3 THE LANGUAGE FOR SHARING STRATEGY WITH TEAM MEMBERS

  • Lay out the short-term goals organizational goals and measures
  • Select the top 5-10 KPIs that will be used to manage the performance
  • Use your SWOT Analysis to Set Priorities and create traction
  • Evaluate the options you have prioritized and identify the ones that create the greatest benefit and to best achieve the mission and vision of your organization.

STEP 4 Define the Long-Term Strategic Objectives                                            

  • Create Annual Milestones. ...
  • Create a Year One Operational Plan. ...
  • Monitor Regularly at Board Level. ...
  • Adjust Accordingly.

EXAMPLE: Amazon's primary goal: link the digital and brick-and-mortar shopping experience in order to be part of every single purchase made.

A short-term strategy includes a detailed action plan: what  platforms will the marketing appear (TV, radio, print, social media). Who will carry out the strategies,  budget, profit, etc

More episodes
Search
Clear search
Close search
Google apps
Main menu