The document discusses the increasing focus on measurement, ROI, and other business metrics for meeting and events spending due to recent economic instability. It notes that measurement is now seen as important to demonstrate return on investment to management and help protect budgets. While basic measurement is better than none, more sophisticated tools and analysis are needed. The document provides recommendations for developing a measurement system, including keeping it simple, establishing clear goals, and collecting the right types of metrics.
KPI are very useful to measure how business is running; but sometimes, they have wrong effects on behaviours of actors; that is why we explain what can be done to create KPI being performance drivers.
KPI are very useful to measure how business is running; but sometimes, they have wrong effects on behaviours of actors; that is why we explain what can be done to create KPI being performance drivers.
When it comes to sustainability reporting, companies may feel like they’re in an increasingly uncomfortable public-private vice. On one side, consumers and shareholders are pressuring organizations to be better corporate citizens and increase transparency. Governments are establishing more reporting requirements as well, which will inevitably multiply through initiatives such as the recent Sustainable Innovation Forum at COP21.
No matter how you look at it, the call for climate action is coming
in surround sound. Integrated reporting is becoming more and
more mainstream.
The good news is that sustainability programs and reporting can
boost consumer confidence, shareholder esteem — and a company’s bottom line.
Make Intelligent Decisions that Drive Business Value
Improving profitability is one of the highest priorities for business managers. The challenge is to identify and analyze profit-making activities by specific dimensions such as customers, products, channels, segments, and business units. Accurate data helps drive continuous profit improvement initiatives by helping businesses understand where and how to improve profitability.
The results can be staggering. Companies that leverage cost analytics
to focus on cost reduction can experience reductions of 3–5%, while those that focus on profitable growth and revenue initiatives can achieve 5–15% improvements. For example, a $4 billion financial services
firm added $600 million in annual profit enhancement by focusing on profitable growth and revenue rather than cost containment.
Longview Profitability Analytics leverages your company’s data to provide powerful insight into revenues, business costs, margins, and operations to help you develop profitable action plans.
ALL THE DETAILS ARE MENTIONED IN THE DOCUMENT RELATED TO ALL 4 PERSPECTIVES OF BSC.
-REFERRED MAINLY FOR STRATEGIC COST MANAGEMENT.
-INCLUDES ALL THE EXPLANATION WITH APPROPRIATE EXAMPLES & CASE STUDY
Strategy MapsOnce change leaders have framed their vision and st.docxsusanschei
Strategy Maps
Once change leaders have framed their vision and strategy for the change, they can develop a visual representation of the end state and the action paths that will get them there. The tool was developed by Robert Kaplan and David Norton and is called a strategy map.27 As can be seen from Figure 10.3, financial outcomes are driven by customer results. These customer results come from the performance of internal systems and processes, which in turn rest on the organization’s resources (human, informational, and capital).28
Once the change vision and strategy are defined, Kaplan and Norton recommend starting with financial goals and objectives and then setting out the objectives, initiatives, and paths needed to generate those outcomes. The financial perspective drives the goals and objectives.
· If the vision for change is achieved, how will it look from the perspective of the financial results achieved?
· To accomplish these financial outcomes, what initiatives have to be undertaken from a customer perspective to deliver on the value proposition in ways that generate the desired financial results?
· To accomplish these customer outcomes and/or contributions directly to the financial outcomes through efficiencies, what changes must be tackled from an internal business process perspective?
· Finally, to attain the internal process goals and objectives, what must be undertaken from a learning and growth perspective to increase the organization’s capacity to do what is needed with the internal processes and customers?
Figure 10.3 Generic Strategy
Source: From H. M. Armitage and C. Scholey, “Using Strategy Maps to Drive Performance,” CMA Management, Vol. 80, #9, 2007, pg. 24.
The learning and growth perspective embodies people, information, and organizational capital (e.g., culture, intellectual property, leadership, internal alignment, and teamwork). For not-for-profit organizations, many recommend placing the customer perspective at the top of the model (some have relabeled it as the stakeholder perspective), since this is the reason for the organization’s existence. Some place the financial perspective parallel with the customer or stakeholder perspective, while others place it below learning and growth or elsewhere. Others have added levels or changed labels on the strategy map. However, the goal remains the same: develop a coherent picture that aligns your change strategy with the organization’s purpose so it generates the desired outcomes. It is all about translating the change vision into action, communicating with key constituents, integrating and aligning the specific action plans, implementing, and learning and refining as you go.
The assumption underlying strategy maps in for-profit organizations is that financial outcomes are the end goals that they are striving for and that other objectives within the change program should be aligned to produce and support those desired outcomes. If particular activities and the objective.
For many organisations there is an ever-increasing need to reduce cost.
Still, it’s as important as ever not to overreact. Failure to understand the impact of choices made now will squander an opportunity to add real value. It will also risk inflicting lasting damage that will make recovery needlessly difficult, and all amid a crisis of unknown duration.
This e-book from Hudson&Hayes provides a pragmatic approach to optimising operational costs in times of radical change and uncertainty. Amid the unusual conditions created by COVID-19, this approach is especially valuable.
For further information, please visit https://www.hudsonandhayes.co.uk/pragmaticcostreduction
The event and trade show industry is getting refined, redefined and reinvented by face-to-face marketing departments around the world. Gone are the days of passive, tactical programs. Today’s events and trade shows are strategy-driven and goal-oriented. Translation: They’re getting stronger. This first-annual Trend Tracker, produced by Global Experience Specialists (GES), provides a rapid-release checklist of trends. Go through the list and check-off the ones you’re activating now. Circle others you know you should. And fill-in the ones you need to learn more about
Australia’s Corporate Real Estate Trends, Getting the Strategy Right, reveals that the Australian CRE’s see their mandate as stronger than three years ago – 26% say much stronger and 40% say stronger. Find out more at http://globalcretrends.jll.com/Australia.php
When it comes to sustainability reporting, companies may feel like they’re in an increasingly uncomfortable public-private vice. On one side, consumers and shareholders are pressuring organizations to be better corporate citizens and increase transparency. Governments are establishing more reporting requirements as well, which will inevitably multiply through initiatives such as the recent Sustainable Innovation Forum at COP21.
No matter how you look at it, the call for climate action is coming
in surround sound. Integrated reporting is becoming more and
more mainstream.
The good news is that sustainability programs and reporting can
boost consumer confidence, shareholder esteem — and a company’s bottom line.
Make Intelligent Decisions that Drive Business Value
Improving profitability is one of the highest priorities for business managers. The challenge is to identify and analyze profit-making activities by specific dimensions such as customers, products, channels, segments, and business units. Accurate data helps drive continuous profit improvement initiatives by helping businesses understand where and how to improve profitability.
The results can be staggering. Companies that leverage cost analytics
to focus on cost reduction can experience reductions of 3–5%, while those that focus on profitable growth and revenue initiatives can achieve 5–15% improvements. For example, a $4 billion financial services
firm added $600 million in annual profit enhancement by focusing on profitable growth and revenue rather than cost containment.
Longview Profitability Analytics leverages your company’s data to provide powerful insight into revenues, business costs, margins, and operations to help you develop profitable action plans.
ALL THE DETAILS ARE MENTIONED IN THE DOCUMENT RELATED TO ALL 4 PERSPECTIVES OF BSC.
-REFERRED MAINLY FOR STRATEGIC COST MANAGEMENT.
-INCLUDES ALL THE EXPLANATION WITH APPROPRIATE EXAMPLES & CASE STUDY
Strategy MapsOnce change leaders have framed their vision and st.docxsusanschei
Strategy Maps
Once change leaders have framed their vision and strategy for the change, they can develop a visual representation of the end state and the action paths that will get them there. The tool was developed by Robert Kaplan and David Norton and is called a strategy map.27 As can be seen from Figure 10.3, financial outcomes are driven by customer results. These customer results come from the performance of internal systems and processes, which in turn rest on the organization’s resources (human, informational, and capital).28
Once the change vision and strategy are defined, Kaplan and Norton recommend starting with financial goals and objectives and then setting out the objectives, initiatives, and paths needed to generate those outcomes. The financial perspective drives the goals and objectives.
· If the vision for change is achieved, how will it look from the perspective of the financial results achieved?
· To accomplish these financial outcomes, what initiatives have to be undertaken from a customer perspective to deliver on the value proposition in ways that generate the desired financial results?
· To accomplish these customer outcomes and/or contributions directly to the financial outcomes through efficiencies, what changes must be tackled from an internal business process perspective?
· Finally, to attain the internal process goals and objectives, what must be undertaken from a learning and growth perspective to increase the organization’s capacity to do what is needed with the internal processes and customers?
Figure 10.3 Generic Strategy
Source: From H. M. Armitage and C. Scholey, “Using Strategy Maps to Drive Performance,” CMA Management, Vol. 80, #9, 2007, pg. 24.
The learning and growth perspective embodies people, information, and organizational capital (e.g., culture, intellectual property, leadership, internal alignment, and teamwork). For not-for-profit organizations, many recommend placing the customer perspective at the top of the model (some have relabeled it as the stakeholder perspective), since this is the reason for the organization’s existence. Some place the financial perspective parallel with the customer or stakeholder perspective, while others place it below learning and growth or elsewhere. Others have added levels or changed labels on the strategy map. However, the goal remains the same: develop a coherent picture that aligns your change strategy with the organization’s purpose so it generates the desired outcomes. It is all about translating the change vision into action, communicating with key constituents, integrating and aligning the specific action plans, implementing, and learning and refining as you go.
The assumption underlying strategy maps in for-profit organizations is that financial outcomes are the end goals that they are striving for and that other objectives within the change program should be aligned to produce and support those desired outcomes. If particular activities and the objective.
For many organisations there is an ever-increasing need to reduce cost.
Still, it’s as important as ever not to overreact. Failure to understand the impact of choices made now will squander an opportunity to add real value. It will also risk inflicting lasting damage that will make recovery needlessly difficult, and all amid a crisis of unknown duration.
This e-book from Hudson&Hayes provides a pragmatic approach to optimising operational costs in times of radical change and uncertainty. Amid the unusual conditions created by COVID-19, this approach is especially valuable.
For further information, please visit https://www.hudsonandhayes.co.uk/pragmaticcostreduction
The event and trade show industry is getting refined, redefined and reinvented by face-to-face marketing departments around the world. Gone are the days of passive, tactical programs. Today’s events and trade shows are strategy-driven and goal-oriented. Translation: They’re getting stronger. This first-annual Trend Tracker, produced by Global Experience Specialists (GES), provides a rapid-release checklist of trends. Go through the list and check-off the ones you’re activating now. Circle others you know you should. And fill-in the ones you need to learn more about
Australia’s Corporate Real Estate Trends, Getting the Strategy Right, reveals that the Australian CRE’s see their mandate as stronger than three years ago – 26% say much stronger and 40% say stronger. Find out more at http://globalcretrends.jll.com/Australia.php
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By Dev Sharma
Director Global Accounts -
Meeting Events
is Alive”
“The
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2. hat reasons
motivate
measure-
ments today?
Is it to gauge
the satisfac-
tion of the
attendees or is it due to the ever-increas-
ing influence from procurement? Clearly
the results (see fig 1) are reflecting times
have changed dramatically and after
a period of relative freedom of spend-
ing over the last twenty years, the last
18 months of economic instability has
changed most managements’ attitude to
wanting to know what they can
expect as a return on the money they
invest in events.
Furthermore, in the financial statements
of most publicly-traded companies, after
Cost of Goods Sold and Talent, usually
the “Travel, Meetings and Events” line
up shows up quite soon. As companies
continue to streamline their overall
operations to deliver maximum share-
holder value, larger spend areas quickly
fall under the microscope.
Measure before you get measured
Even the most basic of measurement
programs are better than no measure-
ment at all. Measure proactively and
enhance your measurement approach
step by step. Value generated from
measurement is not only figures but also
learnings and identification of areas of
optimization (fig 2).
Lastly, measure where it matters the
most, frequently on the large spend are-
as, for example your largest events. The
“Event Measurement Today” chart (fig 3)
shows data from a survey conducted in
Germany and illustrates that the tenden-
cy to use simplistic versus professional
or complex tools was most prevalent.
With the crescendo of the economic
crunch having come late 2008, we feel
certain that the use and implementation
of more evolved tools was accelerated.
Regardless of the level of measurement
methodologies you may have in place,
when you measure you are always one
step ahead.
Establishing a decisional framework
Giving all the variables a number helps
quantify what success looks like and
reduces decisions based on intuition.
Furthermore measurement needs a
custodian in the company, establishing
who owns and is accountable for meas-
urements will bring the program to life.
If you are in the early stages of a
measurement system, getting started
can be difficult, but you must start
somewhere. Like any journey it always
starts with a first few steps - below our
recommendations:
1. Gauging your company culture:
Does the company make data driven
decisions or do other criteria come
into play?
2. Establishing a clear vision for what
successful measurement looks like for
the company and the functional de-
partments: While “One size” doesn’t
fit all and critical success factors vary
between Marketing, Travel, Meeting
and Events, an integrated perform-
ance measurement approach will
accelerate internal alignment.
3. Embedding measurement at the be-
ginning of the business planning proc-
ess: Measurement should become a
way of working. Key performance indi-
cators established in the design phase
invariably leads to event planning and
execution that meets the mark.
4. Keep it simple: Adoption of simple
and streamlined measurement sys-
tems have the highest likelihood of
becoming part of your company DNA.
• Caution: Collecting large amounts
of data might look great in the report
but it needs to be balanced with infor-
mation overload that hinders versus
helps decision making.
5. Help is out there: Consider and collabo-
rate with event management agencies
which understand the business rele-
vance and importance of measurement.
Alternatively, complement internal plan-
ning teams with specialist measure-
ment companies or event management
companies that can audit, evaluate and
optimize your strategy.
Value retention through effective
measurement
The value chain can be influenced by
many steps in the process. Interestingly
enough the opportunity of value reten-
tion is best illustrated in the chart “Value
Loss” (see fig 2). By establishing clear
Key Performance Indicators for each
step of the event life cycle, the optimiza-
tion potential learnt through a measure-
ment management system can signifi-
cantly improve the overall performance
picture. Done repeatedly and over time,
it can prognosticate a success DNA –
which evolves the value of measurement
from cost justification to mitigating risk
and allowing better budget allocation
decisions to be made. Rationale being:
invest on the activities that bring the
most value to the business, whilst reduc-
ing or eliminating activities that do not.
The example shown is a real case of a
global brand – needless to say any event
with a 92% bleed rate on value is far
from desirable.
Measurement and information add
value only if they change our actions
in the process
If the Wright brothers had known in 1903
that measurement had shown that at
high altitudes a plane encounters less
air resistance and can fly faster with less
power consumption they may have been
inclined to build a different kind of flying
machine and today’s aeronautics may
have looked very different.
Event marketing is about uniting internal
and external stakeholders and
engaging with them in live experiences.
By successfully shaping, managing and
measuring those experiences and rela-
tionships, value is created for the organi-
zations, brands, products and services.
INVPIRE
W
Fig 3 Event Measurement Today3
0 10 20 30 40
16
41
18
44
24
15
8
no measurement
internal basic
meas.
prof. internal
tools
surveys
business analysis
prof. external
tools
ROI model
(survey Germany 2008 - n 850)
Fig 2 Value Loss2
Strategy X
X
X
X
X
X
X
X
No clear strategy
From 100% down to 8%
Planning Wrong strategic planning
Budget Lack of budget to achieve impact and sustainability
Target group Low level target group
Business impact No business impact - just a nice event
Sustainability No sustainability link/follow-up activities
Brand impact Bad communication and brand presence
Implementation Implementation problems
100%
8%
220 Corporations Surveyed:
Best in Class: 5% of corporations had
a 80% value retention
Average: 54% value retention
Laggard: 12% of corporations had 20%
value retention
Procurement Influence
5%
Marketing
Best Practice
5%
To Demonstrate Marketing ROI
37%
To Improve Attendee
Experience
17%
To Protect or
Increase Budget
4%
To Justify Expenditure
10%
Other 22%
Fig 1 Measurement Motivation1
Question: Why do you measure the impact
of event marketing?
1
Source: EventView 2009 Global
2
Source: Reflection Marketing
3
Source: Reflection Marketing
_