Docstoc

Performance management best practices

Document Sample
Performance management best practices Powered By Docstoc
					Performance management best practices




It used to be that marketing was approached introspectively, focusing solely on what
the organization produced or delivered. Today successful organizations focus on
understanding markets, consumers, and other external factors that shed a whole new
light into the organization.

With the advancement of technology and communication mediums in marketing, with
the large amounts of data we are now able to collect, and the evolving science of
evaluating marketing performance, marketing has transformed into the most valuable
tool for many fast growing businesses.

With tightening budgets, and the need for fiscal accountability on funds dedicated to
projects and services, marketing measurement has yielded considerable revenue gains
for those organizations that have taken advantage of this powerful practice.

According to a recent survey of over 400 organizations, those who have embraced and
implemented performance management marketing techniques into their decision-
making process not only have experienced greater impact on revenue, but also tend to
be leaders in their respective markets. Despite this parallel, most companies fail to
take advantage of this practice.

So why is it important to measure marketing performance? Because it enables your
organization to measure, understand, and continuously improve your marketing
efforts. And over time, with continuous marketing performance improvements, your
organization will become a leader in your market, translating performance data in
ways your competitors haven't begun to think about. Here are five best practices for
implementing a marketing performance management system that drives high growth
and simplifies decision making.

1. Gain Senior Level Buy-In

It is critical that senior level management and executives buy into a marketing
strategy for performance. Studies have shown that senior level management that
places value in leveraging marketing performance data into overall strategy increase
their organization's chances for success. Compound this with strong marketing
leadership that is able to translate the marketing strategy into action and these
organizations are often able to quantify extraordinary results through marketing
performance management. In a recent survey by CMG Partners, 71% of companies
that are successful in marketing performance management also reported having strong
senior level buy-in. Despite these convincing numbers, most did not have marketing
performance management processes in place.

2. Align Performance to Business Objectives and Strategic Goals

Just as it is important for organizations to align their information technology systems
to their overall strategy, it is equally important to align your marketing into your
strategy. With strategic alignment, organizations can identify which marketing
strategies are successful and better understand the impact in which these strategies
play into organizational objectives. Companies that excel at implementing marketing
performance management strategies align their marketing strategies and measures
with organizational objectives and goals.

3. Target Investments Based on Marketing Analysis

Making targeted investments in people, technology and data systems is essential to
implementing a marketing performance management system that drives growth and
improves decision making. Like measuring performance in other areas of the
organization, the science in effectively applying marketing performance management
is being able to filter out which measures are key to organizational growth among the
many metrics that are out there. But in order to get the key data that drives these
decisions we must first have systems in place that are capable of gathering and
analyzing the data. For the many organizations that do not have these systems in
place, a starting point may be to train or hire staff with the skill sets to implement an
effective performance management system and develop a plan for sharing this
knowledge throughout the organization.

4. Develop a Processes For Analyzing Marketing Performance and Taking
Action

Just as processes and process improvement is essential to a growing organization in a
rapidly changing market, implementing and managing a process for gathering,
reporting and analyzing marketing performance data is essential for driving
organizational growth and leveraging marketing data. When developing the processes
it helps to ask the following questions "are we gathering the right information?", "are
we analyzing the information completely?", "what strategies are working and why?",
"how can we leverage these strategies that are working?" The most important thing is
making sure that your organization is taking action on the information it currently is
able to provide. I know of many organizations that have very few systems
implemented, that are using marketing performance information to increase sales and
sustain growth.

5. Leverage Marketing Performance Enterprise-wide

As your organization applies marketing performance management best practices and
processes and begins to excel at collecting and analyzing marketing data and applying
action you can extend these efforts to other areas within the organization so that you
can be strong at marketing in all aspects of your organization. The majority of
companies that excel with their marketing performance practices are leveraging the
insights and implications beyond the marketing function. This includes improving
cross-functional alignment and results in improved decision making, budgeting, and
planning. In addition, many organizations are using their measures to improve the
customer experience across numerous functional areas.

Since many small businesses start online, they may begin focusing on online
marketing, where you maximize profits in areas that provide strong returns,
measuring such things as brand perception, downloads, content preference, promotion
interest, etc. Then, as that business grows they may want to extend marketing
performance management to macro level metrics, such as campaign effectiveness,
customer satisfaction, market share, etc. As the organization becomes savvier at
analyzing marketing performance data they may extend their focus to micro level, or
action-level metrics such as task completion, marketing efficiency, process
performance, decision accuracy, etc. Look for future articles describing in detail the
metrics associated with marketing performance.


http://performanceappraisalebooks.info/ : Over 200 ebooks, templates, forms for
performance appraisal.

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:12
posted:2/28/2011
language:English
pages:3
Description: Performance management best practices