How to Measure Strategic Market and Competitive Intelligence Performance


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What is it worth? The question is as old as commerce itself...

Decision-makers want to be sure they are expending the appropriate amount of resources on the right kind of activities to maximize value.

Intense, hyper-competitive environments and stakeholder concerns continue to create pressure on firms to enhance spending efficiency wherever possible. Senior managers expect to see tangible return on their investments and often complain about the lack of understanding of how a given activity like CI, actually contributes to the bottom line. Numbers-driven CEOs and CFOs need to know that CI budgets and activities are efficiently making a tangible contribution to desired performance.

Too many CI executives lack convincing responses when asked by senior executives to justify their budgets or staffing requests, whether it be financial measures like return on investment (ROI) and internal rate of return (IRR), year-on-year productivity improvement indices, or just doing far more with much less. Unfortunately, even after decades of practice and scholarly research on this topic, no accepted industry convention or “plug and play” software application exists to reliably make the case for and connect CI results with organizational ones.

Benefiting from nearly two decades of successful experience in leading several top CI functions, we'll discuss a variety of approaches, philosophies, processes and methods to illuminate discussions about results and performance between intelligence and organizational leadership. Specifically, the session will look at:

- Measurement and valuation approaches and tactics demonstrated to work (as well as those that don’t)
- Critical factors to address in demonstrating CI performance and its impact to the organization when the time comes to ask for more resources
- Quantifiable methods for connecting intelligence results with organizational performance

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  • Numbers or estimate are best
  • Be seen as constantly and actively looking for ways to improve and add value
  • How to Measure Strategic Market and Competitive Intelligence Performance

    1. 1. How to Measure Strategic Market and Competitive Intelligence Performance A Complimentary Webinar from Aurora WDC 12:00 Noon Eastern /// Wednesday 19 December 2012 ~ featuring ~ Craig McHenry Dr. Craig Fleisher Powered byThe Intelligence Collaborative #IntelCollab
    2. 2. Are you worth the price?  The lifespan of the average CI group is between three to four years! (SCIP Surveys)  Today’s hyper-competitive environments create economic pressure on firms.  Are you prepared to articulate, well and often, the value of CI to your stakeholders? Powered byThe Intelligence Collaborative #IntelCollab
    3. 3. What is in it for me… besides my job?  When done effectively, demonstrating and measuring CI value: Affects the success of your company and organization Provides a means to improve and grow - Understand what is working, is not working, & why? - Expands CI influence to areas of the organization Moves you from overhead and cost center to profit center and enabling function - Captures CI performance in financial terms - Reminds stakeholders of what you do and why Powered byThe Intelligence Collaborative #IntelCollab
    4. 4. Acknowledge, But Overcome The Barriers And Excuses  No time to do it  Don’t know how  No complaints = satisfaction?  CI value is too deeply embedded in other activities Return on Investment = CI Benefits / CI Costs (calculating the numerator is the problem) Other groups support decisions-making too Powered byThe Intelligence Collaborative #IntelCollab
    5. 5. Measure Strategic Market &Competitive Intelligence Performance Embrace A variety of Ask for more Connect results with measurement and resources organizational valuation “intelligently” performance approaches • Behave like an • When you can, • Result oriented internal business calculate qualitative • Do it to yourself • Link to key descriptions before they do issues/products/ser • Statistics and • Create a culture of vices/ figures “CI” for CI • Swing for the fences • Making “value” the KIT Powered byThe Intelligence Collaborative #IntelCollab
    6. 6. Tell The Story – Clearly and Often  How CI caused your stakeholder to do something different or differently Without CI = X but with CI = Y  Consider: The STAR Technique Situation – Describe the business issue Task – What was CI’s role Action – What did you do and why Result – Describe the outcome of CI research and overall business impact Powered byThe Intelligence Collaborative #IntelCollab
    7. 7. Measure! - “What gets measured gets managed”  Statistics = good, but don’t tell the whole story Number of: projects, project hours, KITs, reports, etc. How many: unique interactions, business functions, Budgets: CI dept. budget, CI headcount, project $,  Metrics that hint at quality of work done Not just were we right, but what was confirmed / new information/ revised (before decision) What sources were used (internal vs external) (how many, of what caliber) How much “repeat” business do you get?  Decisions – Size/monetary impact, time under consideration, etc. Powered byThe Intelligence Collaborative #IntelCollab
    8. 8. An idea! - treat the value question like its own CI project Elicit the information from the organization Formal discussion with key stakeholder(s) after delivering results – part of the project plan Probe on the perceived value of the work done - What is the expected value to the company of the decision made? - If money were not an issue, what would you be willing to pay for this information? - What would you had done if CI had not been an option? Consider using a 3rd party Powered byThe Intelligence Collaborative #IntelCollab
    9. 9. Points To Keep Mind  Caution: stakeholder involvement bias  Keep legal informed of your work - they can be an important ally  Sometimes you can infer value When the CI budget comes from the product groups, they are expecting a benefit or return to their bottom line – e.g. voting for CI with their budget. Compare CI research to other market and customer analytics Powered byThe Intelligence Collaborative #IntelCollab
    10. 10. When The Time Comes To Ask For More Resources…  Behave like an you are running your own business  Face the inevitable - do it to yourself before they do  Create a culture of Continuous Improvement for CI – meaning you should be able to tell others where the improvement occurred, how much, and at what quality levels Powered byThe Intelligence Collaborative #IntelCollab
    11. 11. Behave Like An You Are RunningYour Own Business  Benchmark but be skeptical Use comparisons only as a guide Give more weight to internal metrics  Learn to say no -- but remember to whom and why Some rejected projects are areas ripe for growth and expansion Better to say no than short change an important stakeholder with inferior work – use opportunity to asses need for more resources Powered byThe Intelligence Collaborative #IntelCollab
    12. 12. If necessary face the inevitableand do it to yourself before they do Get out in front of obvious business changes and step up to the challenge Track project deliverables and perceived value - Know where you would do more and where less work Proactively consider outsourcing specific CI activities to focus on high value tasks - Can be used to both grow and expand capacity in advance of adding headcount - Can also be use to reduce or redeploy assets in the face of cuts Powered byThe Intelligence Collaborative #IntelCollab
    13. 13. Create a culture of ContinuousImprovement for CI  Consider: After Action Assessments any time CI work is done for a team As part of project wrap up, capture project details and feedback from all involved - How complex was the question/business issue? - How well did we describe the risks associated with what “we knew we didn’t knew?” - Did we fully leverage our internal knowledge? - What are the lasting consequences of this project? - If we found a discontinuous change, is there any way to anticipate or compensate for that next time Provide feedback and learning to stakeholders Powered byThe Intelligence Collaborative #IntelCollab
    14. 14. Quantifiably Connect CI ResultsWith Organizational Performance  If possible, calculate return on investment  Link CI effort to key specific issues /products /services  Swing for the fence – One homerun at the right time can make the whole season Powered byThe Intelligence Collaborative #IntelCollab
    15. 15. If The Data Exists, CalculateProject Return On Investment (ROI)  ROI calculation: Best when a benefit can be clearly quantified Don’t be shocked by some very high ROI figures from time to time - Benefits realized over time can be adjust for NPV  Increase return by reusing where possible Build and track use of your “Inventory of Knowledge” Powered byThe Intelligence Collaborative #IntelCollab
    16. 16. Link CI Projects To Key Issues/Products/Services  Track product performance relevant to CI projects done Look for changes related to CI supported decisions Areas without active CI work offer points of comparison – use caution here  Identify inflection points What if scenarios aren’t always reliable, but can point to likely benefits from CI projects Powered byThe Intelligence Collaborative #IntelCollab
    17. 17. Swing for the fences – one homeruncan make the entire season  Although infrequent they are gold Look for those projects where you can obtain concrete data on the benefits Write up the work as a short case study for internal circulation and promotion - Example: A change in strategy based on actionable CI work which cost $100k and added $5mm sales to product’s bottom line - ROI – ($5mm/ $100k) * 100 = 5,000% !!! Success like this can influence stakeholders for years to come Powered byThe Intelligence Collaborative #IntelCollab
    18. 18. Questions and Comments  Craig McHenry   Dr. Craig Fleisher  Powered byThe Intelligence Collaborative #IntelCollab
    19. 19. Biographies Craig McHenry Craig McHenry has over 20 years of CI experience in a variety of leadership roles. Craig most recently Director, CI for Pfizer’s Specialty Care Analytics Business Unit. He joined Wyeth in 1991 and advanced his understanding of the pharmaceutical industry while working in several business functions Since early in his career at Wyeth, Craig has been involved with competitive intelligence. In 1993, Craig played a key role in forming the first Business and Competitive Intelligence function, which evolved over the years into a Competitor Insights team. Before Wyeth, Craig spent five years at Unisys and holds a M.A. in Computer Science Ed. He has been a member of SCIP since 1993 and is a graduate from the Gilad-Herring Academy of Competitive Intelligence. Dr. Craig Fleisher With 25 years of intelligence experience, Dr. Craig S. Fleisher joined Aurora in 2011 as its Chief Learning Officer. He helps direct the Intelligence Collaborative (Intel Collab), manages the firm’s internal analyst team, as well as executes tailored analytics and training programs at our clients’ locations. His PhD (Strategy, Environment & Organization) is from the University of Pittsburgh’s Katz Graduate School of Business, MBA (Marketing & HRM) from Vanderbilt University. Previously a business school dean, MBA Director, and Chaired Full Professor, Dr. Fleisher is a past president of the Strategic and Competitive Intelligence Professionals (SCIP) society, Chair of the Competitive Intelligence Foundation, Editor of the Journal of CI & Management, and is a SCIP Meritorious Award winner and Fellow. Powered by 19The Intelligence Collaborative 19 #IntelCollab