article | October 11, 2017
What Every Marketer Needs To Know About Measuring KPIs
KPIs not only differ from company to company; they also vary between departments. So, what’s the secret to aligning your KPIs to beat your number? It’s the tactic all top performing organizations are swearing by: You have to align your functional strategies first.
With Q3 behind us, you’ve already conducted Market Research to understand changes in the industry and competitor landscape. And you’ve refined your Corporate Strategy to be up to speed with these new trends (SBI’s “How to Make Your Number in 2018” documents these new trends).
Now that you have those baselines set in place, it’s time to solidify the other department’s strategies. Then you’ll be ready to use this information to actually pinpoint the key performance indicators (KPIs) to measure. This way, your entire organization’s goals can be aligned. And each dollar, hire, and initiative will be set up to make the number.
Here’s how to do it.
When To Define and Integrate Your KPIs
In Q4, each respective team will flesh out the Product, Marketing, Sales, and Pricing Strategies. In other words, they will have to document how their department will accommodate the changes in the marketplace.
Once these strategies are drafted, they will be reviewed with the other strategy owners. As a result, these teams will come together to create a priority list of three to five key integration points. These points will incorporate the benchmarks and needs of the functional strategies, with an eye towards the ultimate goal of making the number.
Finally, these integration points become the KPIs that Marketing Operations will measure going forward.
It’s easy to see that only with alignment and cooperation between teams can an organization be in a position to optimize investments.
When and How To Review Your KPIs
In the new year, your company will enter Q1 with strategies aligned and common KPIs in place. That’s a great place to be.
But now that the strategies are going to be put into action, each department must be sure that their teams are sticking to their plans. That’s why it’s best to put weekly and monthly reviews into action.
Here’s what those look like:
Functional leaders meet one-on-one to look for areas of misalignment, prioritize what each function owes the other function, share new market intelligence, and set action items for the coming week.
Each team reviews the KPIs to ensure the organization as a whole is on pace to achieve the objectives. KPIs may be summarized on a stoplight report. Green areas are celebrated, yellow areas investigated for emerging issues, and red areas should signal a need to rework the execution plan.
With these plans in place, no part of your organizational strategy will slip through the cracks–at the C-suite level or individual contributor level. There will be bumps along the way as the year progresses, but with a proper review system, any small infraction can be course-corrected, keeping you on a direct path to making the number.
As evidenced by these points, there’s no time to waste in aligning your strategies and nailing down your KPIs. Feel like Q4 is already speeding by? SBI is ready to combine our insights with your organizational setup to help you make the number. Have expectations gone up and left you wondering if you can make your number? Here is a tool that will help you understand if you have a chance at success. Take the Revenue Growth Diagnostic test and rate yourself against SBI’s sales and marketing strategy to find out if: