So you just developed your new strategy, but how do you find out if it worked? Of course, you select your targets and then (in the best case) evaluate. But which metrics should you choose? We collected the best tips to find the right targets for your new strategy.
Finding the right metrics can be difficult, after all, you can choose between a variety of them. But it is also very important to select the best targets to be able to determine how successful your initiatives have been. Therefore, you should follow these 3 tips:
1. Milestones vs. quantifiable performance measures
The first step for you is to find out if your targets are milestones or quantifiable performance measures. Milestones, or outcomes, are metrics for tasks or projects that you have completed by a certain date. Those you can evaluate once they are done.
Imagine you would like to have more visitors to your website, this would be a milestone, but are two extra visitors why you set the goal? Probably not. So to make the goal relevant you must add a measurement, maybe you want to increase the number of visitors by 20% every quarter?
The selection here depends on your business and project. Quantifiable performance measures, or drivers, on the other hand, are numerical ones, f.e. revenue or profit growth. They are easier to implement and often used to complete a milestone. When selecting your metrics it is important to have at least one outcome target per strategic objective.
2. Cause and effect
Additionally, when you select the targets that are the most tied to your initiative or goal you have to analyze their cause and effect: which ones have which impact on your strategy and which ones require which effort You want to choose the ones with the least amount of effort while providing the biggest impact and the necessary data.
Now you are looking to increase your amount of visitors by 20% every quarter, great, but why? Does this measurement drive the effect you wish for? My guess is you really want more customers, therefore you might rather want to monitor how many sign-ups you gain as you might already know that you can turn about 5% of your subscribers into a customer.
Moreover, you have to keep your metrics data up-to-date to be able to measure your success properly over your chosen period.
3. SMART method
Moreover, to find the right targets it helps to follow the SMART method. It includes 5 easy steps to go through when selecting a metric:
Simple: The target you choose should be easy to understand and easy to implement and evaluate
Measurable: Additionally, your metric should be quantifiable; it helps to use numbers and statistics to be able to graph them
Actionable: You can easily interpret the results and know what actions to take to influence the result
Repeatable: Using your target should provide constant information
Timely: Your metric is frequently measurable
Choosing your target is not an easy task. Don’t overload your strategy with too many metrics and only analyze what is really important. With these tips, you should find the right targets to help you implement your strategy and evaluate your success.
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