The Road Map to Perfect KPIs (Key Performance Indicators)

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					The Road Map to Perfect KPIs (Key Performance Indicators)

March 30, 2008
Katie Delahaye Paine
Member, IPR Measurement Commission
www.instituteforpr.com
CEO
kdpaine@kdpaine.com
www.measuresofsuccess.com
What makes a perfect communications KPI?

  Gets you where you want to go
 (achieves corporate goals)
  Is actionable by individuals as well as
 departments
  Continuously improves your processes
  Is there when you need it
Why a dashboard?

  Without data you are flying without radar
  A dashboard tells you what’s working or not working, what
 needs to be done, and what can be dropped
  A dashboard sets a benchmark and establishes periodic
 goals , so at the end of the year you can see that you’ve
 accomplished
Process
What do you need to measure?
 Outputs = Conversations/Activity
      Number of mentions, releases sent, events
      Posting frequency
      Frequency of mentions
      Did you produce the promised materials on time and on budget?
 Outtakes = Engagement/Relationships= What people perceive
      Did your target audience see the messages?
      Did they believe the messages?
      Are they engaged?
 Outcomes = ROI
      Did sales/market share increase?
      Did your reputation improve?
      Did the right people show up?
Goals, Actions and Metrics
       Goal   Action         Output Metric            Outtake Metric            Outcome Metric

Customer               Total opportunities to see   % aware of your      Web traffic to inquiry site
advocacy                        brand or message    brand                Click thrus
                                                    % preferring your    Ticket sales
                                                    brand
Positioning            Were they published on      % hearing message     % consistency in messaging
                                time               % believing message   between external and internal
                       % postings/articles                               communications
                                containing one or                        Market share
                                more key                                 Ratio of on-message to off-
                                messages                                 message quotes
                       Share of positioning on key
                                issues
6 Steps to the perfect dashboard

   Define the “R” –what return? What’s the mission and goal?
   Define the “I” – what’s your investment?
   Define the target audience
   Define the metrics
   Select a benchmark
   Determine your research requirements
Corporate Goals

  Customer Engagement/Intimacy/Advocacy
  Positioning: Innovative, Customer-centric,
  Awareness/preference
  Market share
Audiences

  Employees
  Prospective Employees
  Existing customers
  Prospective customers
  Media
  Influencers/thought leaders
  Government regulators
Possible KPIs

 Improvement in Optimal Content Score (OCS) over time
 Share of thought leadership over time
 Cost per message communicated efficiency/efficiency of
     different channels
 Increase in employee engagement in/credibility of
     communications
 Improvement in relationship /reputation scores with customers
and communities
Why an Optimal Content Score?

   You decide what’s important:
   Benchmark against peers and/or competitors
   Track activities against OCS over time
Optimal content score for media coverage
  Positive:                                  Negative
     Mentions of the brand                     Omitted
     Positive brand mentions                   Negative tone
     Key messages                              No key message
     Customer quoted positive                  No quote
     Analyst quoted                            No analyst quote
     Positioned as trusted partner
     Positioned as trustworthy, ethical
     Positioned as vendor of choice
     Positioned as global
     Positioned as one company
     Positioned as Lead Systems Integrator
                Charting OCS over time between divisions
                             Optimum Content Score Relative to Competitors
                         The Percent Difference Between Each Business Unit's Average Optimum Content Score and the
                                Average Optimum Content Score of Tracked Competitors for each Business Unit

               500%


               400%
                                                                                Patriot (Korea)


               300%
% Difference




                                                                            ASAT, Patriot
                                                                                                                                           SAS
               200%    FBX-T                          AESA                                                                                 IDS
                                                    for F-15E,                                    MALD,
                              DIB                                 Glory APS and                                                            IIS
                                    DDG-1000 MSE                    VIIRS vs.                                   APG-63 (v3) RIS JPL        MS
               100%                                                                         RISS, GBS



                 0%


                       ALR-67(V)3             APG-79, APG63                                 ERGM cancellation
               -100%                                             VIIRS delays                                    NPOESS; BOE B-52 jammer
                       Jul      Aug    Sep    Oct     Nov        Dec    Jan       Feb       Mar     Apr     May      Jun      Jul

                                          2007                                                     2008
   Trend against competition with OCS
                         Optimum Content Score by Company
0.90

0.80

0.70

0.60

0.50                                                                                  Client
                                                                                      Company B
0.40                                                                                  Company C
                                                                                      Company D
0.30                                                                                  Company E
                                                                                      Company F
0.20

0.10

0.00
       Jul   Aug   Sep   Oct   Nov   Dec   Jan   Feb   Mar   Apr    May   Jun   Jul

                     2007                                    2008
Possible KPIs for Employee Communications
  Outputs:
      Correct messages in newsletters, team briefs, intranet, emails, Corp TV
  Outtakes:
      Test content and usage of communications
       % understanding and remembering message (test via quiz, contest, etc.)
  Outcomes
      Do they embrace the messages, the philosophy or culture?
      % increase in perception of innovation
      Increase in pride loyalty
      Perceptions of culture
      Intranet use
      Reduction in hot-line complaints
Measuring engagement
 Involvement+Interaction+Intimacy+Influence1
   Involvement
      Website visits
      Time spent
      Page views
   Interaction
      Comments
      Reviews
   Intimacy
      Sentiment
      Positioning
   Influence
      Likelihood to recommend
      Brand affinity
      Forwards
      Links
                            1. Source: Brian Haven, Forrester Research
Event/exhibition KPIs

  Outputs:
     Were they exposed to the messages?
     Where did they see the messages?
  Outtakes:
     Increase in preference
     Increase in awaraeness
  Outcomes:
     Increase overall leads
     Increase % of qualified leads
Media KPIs

  Share of discussion over time
  Share of highly visible coverage over time
  Share of spokespeople/thought leader visibility over time
  Distribution of coverage by subject
  Share of positive coverage over time
  Share of negative coverage over time
  % of articles containing key messages over time
  Key message communication over time
  Share of positioning on key issues
Determine your benchmarks

    Past Performance              Think 3
    Your competition                 Peer
    Peer Organizations               Stretch goal
                                     Underdog nipping at your heels
    Whatever keeps the Martians
up at night
Determine research requirements and budget


   What data already exists?
     Customer research
     Sales data
     Outside research reports
  What else do you need to know?
  5% of budget should be spent determining whether the
 other 95% is working
Tying it to the bottom line

   Employee turnover: (1 employee = $50,000)
   Application rates
   Donations/revenue
   Transactions
   On-line activity
   Savings on legal costs
KPIs                     Business Objectives

           350,000,000                         $1,800,000

                                               $1,600,000
           300,000,000
                                               $1,400,000
           250,000,000
                                               $1,200,000




                                                            Donations
Exposure




           200,000,000                         $1,000,000
                                                                        Overall exposure

                                               $800,000                 Online donations
           150,000,000

                                               $600,000
           100,000,000
                                               $400,000
            50,000,000
                                               $200,000

                    0                          $0
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Results?

   Secured earned media coverage in all top 50 DMAs (goal):
          Print: 2.3 million+ impressions
          Radio: 7.5 million listeners
          TV: 16,000,000+ viewers
  Raised Web traffic by >22% over November (more than double goal of
 10%)
  Secured 4,700 new registered users via signing of Anti-Cruelty pledge:
 56% > goal (3,000)
  Pre- to post-survey awareness 28%
  Expense budget: $130,000
  CPI: $.10

Courtesy: Client
Awareness closely correlated with media visibility
Purchase and action also relate to media visibility
                                              Mean Involvement Scores by Region


                                              East                                                  E. S.
                            Involvement
                                               N.    Mid-             New          South    W. N.           W. S.
                              Activities
                                              Centr Atlant   Mount   Engla   Pacif Atlant   Centr   Centr   Centr   TOT
                                               al     ic      ain      nd     ic     ic      al      al      al      AL
                            Donate Money      2.91   3.20    2.97    2.77    2.90   3.07    2.59    2.73    3.20    3.00

                              Become a
                             Registered       2.57   2.87    2.74    2.54    2.64   2.79    2.24    2.61    2.79    2.70
                            Member Online

                             Adopt a Pet      2.73   2.97    3.12    2.85    3.14   2.94    2.44    3.05    3.07    2.96


                              Become a
                                              2.45   2.69    2.59    2.49    2.56   2.68    2.12    2.54    2.74    2.59
                              volunteer

                           Purchase Client-
                           brand products     2.86   2.99    3.04    2.74    2.88   2.91    2.29    2.76    3.10    2.9
                             for your pet
   Relationship scores also related to purchase intent
                      Mean Relationship Scores by Region




             East
Relationship N. Mid-               New                                                  W. S.
 Attributes Centr Atlanti Mountai Englan Pacifi South  W. N.                     E. S. Centra
              al     c      n       d      c Atlantic Central                   Central  l      TOTAL
  Keeps promises       3.71    3.99    3.64     3.90       3.83   3.85   3.76    3.98    3.85    3.84



 Value relationship
 with this org over    3.15    3.56    3.22     3.13       3.25   3.31   3.10    3.27    3.46    3.31
       others


   Pleased with
                       3.36    3.67    3.47     3.44       3.42   3.48   3.37    3.49    3.54    3.48
   relationship

Enjoy dealing w/org    3.44    3.83    3.48     3.56       3.51   3.61   3.41    3.46    3.59    3.57
  Facebook: Correlating MSM, CGM and signups

                                                   User Registrations and Media Coverage
Strong correlation   10,000,000
                                                        December 2006-November 2007
                                                                                                 800

Non-negative         9,000,000
                                                                                                 700

discussion only      8,000,000

                     7,000,000
                                                                                                 600

                                                                                                 500
                     6,000,000

                     5,000,000                                                                   400
                                                                                                       New Accounts
                     4,000,000
                                                                                                 300   FB Mentions
                     3,000,000
                                                                                                 200
                     2,000,000
                                                                                                 100
                     1,000,000

                             0                                                                   0
                                  Dec    Jan   Feb Mar Apr May Jun     Jul   Aug Sep   Oct Nov

                                  2006                          2007
How it works

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Thank You!

  For more information on measurement, read my blog:
 http://kdpaine.blogs.com or give me your card and we’ll send you
 The Measurement Standard, www.themeasurementstandard.com
  To start developing your own dashboard or for a copy of this
 presentation go to: http://www.measuresofsuccess.com
  Or call me at 1-603-868-1550