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One tool that business-oriented people use in determining the effectiveness of any advertising campaign or marketing strategy is the calculation of Marketing ROI or return on investment from and for marketing. Often times, Marketing ROI is confused with another tool or methodology in calculating investment return called Return on Marketing Investment. This is also abbreviated as ROMI. Marketing ROI is a business and statistical formula used to see if the advertising methodologies used to promote a product or brand name brought about favorable results for the company in terms of increased number of customers or membership and increased product sales.

According to statisticians, if the marketing return on investment is improved, there is a big possibility that the effectiveness of marketing strategies, actions, tactics, and activities will also show ideal results. It is claimed that marketing is correlated with profits. This is because the strategies used will take in more customers and sales. And all businessmen know that customers are the very bloodline of every business establishment. The actual calculation of marketing ROI is as follows: the marketing investment is subtracted from the incremental distribution campaign. The difference is divided by the marketing investment and the answer is multiplied by 100%.

Analysis of expenses incurred in marketing will help business leaders decide which part of marketing activities need trimming. It is easy to assume that on marketing style is more expensive than the others. Normally, this is what will be trimmed down or totally put to a stop since the literal expense is high. However, there needs to be a tool to determine if the expenses incurred for this marketing methodology is also at par or correlated with the revenue it is earning. Sometimes, what seems to be an expensive marketing advertisement is the very marketing strategy that brings the business on top of the others. If a business leader makes the mistake of removing that marketing campaign, the business will definitely suffer.

An advice that is apt for businessmen is to audit their marketing strategy. There is a need to identify basic statistical figures to help the company gain clearer perspective of the right direction to take. This includes identifying a demography, who the target market is, profiling this target market, knowing the spending power of the target market, frequency of spending, etc.

The second most important ting in determining marketing ROI is the use of data analysis. When a new marketing strategy is used, a statistician needs to know its actual impact by gathering data, such as sales increase, brand awareness through surveys, medium of, marketing strategy whether it was done on the radio, television, print ads, tabloids, internet, or cell phone, etc. Once this information are available, the statistician may proceed in analyzing whether the marketing strategy is effective or not. Then the formula mentioned earlier is put to use.

Doing good business is not about assumptions. Just because a competitor used a marketing strategy does not mean it will also work for another. The key things one should consider is the ultimate mission-vision of the company. This is certainly because marketing strategies will force the company to re-shape or change its image, and thus, lose its business purpose. And if a business does not have a soul or does not have an attitude, customers feel it.

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For a long time coming now, newspaper advertising has been one of the effective methods when it comes to the provision of updates on news events and classified ads. The great thing about news advertising is that news events and classified ads here can take all sorts of forms. It is because of this that newspaper advertising is indeed one of the first-ever mediums that have been used by people worldwide. Since its inception, the newspaper has been one of the most preferred mediums used by people in advertising services, products, jobs, and so many more. But just because newspaper advertising is so popular does not necessarily mean that it is indeed as effective as it should be. Thus, there is a need to implement newspaper advertising KPI or key performance indicators, to be able to accurately measure the performance of newspaper advertising.

By definition, key performance indicators are quantifiable measures that are used in determining the progress of a certain company towards the accomplishment of corporate goals and objectives. Any business in any industry would certainly come up with their own goals and objectives that they want to achieve. This is because these goals give direction and meaning to the establishment of the business itself. However, as time goes by, it is actually quite easy to lose track of these goals and objectives. With the many issues and concerns that will surely sprout about, the management of the company and even the founders themselves would focus on solving present problems or issues at hand. The implementation of an effective balanced scorecard that contains relevant KPIs is then needed, to constantly remind employees of the corporate goals and objectives they have sought to achieve from the very beginning.

The same concept is applied in newspaper advertising. Newspaper companies will have to efficiently come up with relevant key performance indicators, to guide the progress of the company along the achievement of corporate goals and objectives. It just so happens that newspaper companies would have different sets of goals and objectives that they would want to achieve. This is understandable even if these companies do belong in the same industry. No two or three companies would have the same mission, vision, goals, and objectives, right? Since KPIs are aligned with these differing aspects, then it is also expected for these quantifiable measures to vary to some extent.

The size of the newspaper ad and the cost per response are amongst the common metrics used when implementing newspaper advertising KPI. These metrics actually play a huge role in determining the most effective form of advertising that there is in newspapers. For instance, an ad that occupies a whole page attracts the attention of roughly 80 people. However, the ad that just takes up a fourth of a whole page is enough to attract the attention of roughly 60 people. No 1:1 ratio is implemented here at all. It would then make sense to include ad size as one of the newspaper advertising KPIs to use.

As for cost per response, you have to analyze the cost that it would take to entice significant number of responses. In the same example, it is clear that the fourth-page ad is more effective when it comes to cost per response. Having this as part of the newspaper advertising KPI can also assist in achieving corporate goals and objectives in the long run.

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An employee performance scorecard addresses the fact that every employee needs to be driven. Some may be driven through financial incentives, and some may be looking for something that is intangible, such as self-worth. Others may aspire to become supervisors or business leaders one day. All this will be determined through a systematized and organized performance scorecard that gives employees visibility on how management measures and evaluates their performance.

Employees need to know how they stand in the company and they need to be informed of their strengths and the areas they need to improve on. It will be unjust if they will just be told what to do from time to time. A company needs to set standards on what needs to be achieved to align an employee’s goals to organizational goals. These standards are then translated into Key Performance Indicators or KPIs. Many companies measure their employees on a monthly or weekly basis through coaching and documentation of errors and achievements. As a result, action plans are then incorporated in the employee’s activities, to ensure that the employee is properly guided and that targets are met.

The most common targets or metrics set in line are productivity, attendance, and behavior. Behavior may seemingly be very subjective, as each company has a different cultural background and social norms. These behavioral indicators need to be discussed carefully during coaching sessions so employees know what is expected of them. It is very important that an employee’s expectations are set correctly at the onset of employments, so misunderstanding will not occur. It is also very important for management to be aware of what employees expect or demand from them, so adjustment on policies may be made. These adjustments should contribute to the welfare of the business and its employees as well.

A performance scorecard and how it works should also be transparent. Employees should not be baffled at how their managers come up with the numbers seen in the metrics. For example, attendance and how it is measured should be clear. An employee needs to know how his performance is translated into percentages and how it affects the output of the company as well. It is now very common to see a 5-point scale in measuring performance in many companies. This means that an employee is rated from 1-5, 1 being the lowest and 5 the highest. For example, one absence in one month may be equivalent to a rating of 4. Two absences may be equivalent to a rating of 3. The rating is then multiplied by the percentage equivalent of the performance metric. Supposing that attendance is 30% of the total performance, 3 multiplied by 30% is equivalent to 0.9.

This is then added to other existing Key Performance Indicators, such as tardiness, productivity, core values, etc. Once these are summed, the total equivalent should be higher than five. In some companies, the passing or acceptable score is 2.5. Some require 3. Majority, though, will only regularize an employee if the employee hit 2.5; but as far as bonuses and salary increase is concerned, companies may break down the financial incentives for each bracket of the summed scores. For example, a 10% salary increase will be given to those who have a score between 3.01-4.00, 20% to those who have 4.01 to 5.00, and so on. In summation, the performance scorecard is the document used to determine whether an employee is worth keeping or not.

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In the world of employment, the personal balanced scorecard serves as a guide to people who want to achieve more. This is the most basic form of documentation on how a person performs and how he needs to improve on his weaknesses, not just as a person, but as an employee we well. Every person has a need to break down priorities to attain any short term or long term goals. This makes action plans on career movement more organized and systematized.

In the simplest terms, there are only three dimensions for a personal balanced scorecard: Personal Competence, Competence for Adding Value, and Aptitude for Self Actualization. These three are intertwined and one cannot be made complete or fulfilled without focusing on the others.

Personal competence is focused on one’s skill set. This is how one is measured through what is expected of the job. Performance is measured through results and accompanying efforts and core values incorporated in behavior. Although most of the time, efforts do not at all translate to results. And at the end of the day, Personal Competence still boils down to yield of productivity and results—ideally meeting the target set or exceeding expectations.

Competence for Adding Value is more of a self-initiated task. This is measured on additional responsibilities, which an employee does without the intervention of management. In most scenarios, workers or employees will only do what is told. People who have initiative, on the other hand, look further and set their own direction and these career directions are aligned with organizational goals. Competence for adding value is also measured on how sociable a person can be with the people around him. This creates a cultural mindset that people who have the ability to work with others without conflict are people who can also influence others.

Lastly, there is this thing called Aptitude for Self-actualization. This last group of the personal balanced scorecard looks at the balance between a person’s life and work. This has something to do with the person’s feelings towards his work. There is a need to see emotional fulfillment and a vision for growth from that person before it may be even assumed that the person is self-actualized. In reality, self-actualization is difficult to achieve since this is the last thing to be reached in the hierarchy of needs. Without satisfying hunger, emotional needs, physical needs, and other aspects of the human persona, one cannot achieve self-actualization.

Achieving balance within work through measurement of targets in terms of Key Performance Indicators and achieving personal goals is not easy. People need advice from coaches and mentors who will help them sustain their needs at work on a day to day basis. Someone needs to set proper direction or else they will feel lost and stagnant. Add to this the necessity of motivation and fulfillment of financial needs, environmental conditions, development of skills for succession planning, and other key factors that will help a person achieve his goals. These are all integral in achieving a personal balanced scorecard.

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Strategic management thrives on quantification and measurement. This approach started off strictly in the financial aspect of things: costs versus profits, supply versus demand, and so on. As management techniques evolved, the use of measurable parameters, known as metrics, and the most important of which are known as key performance indicators, became more commonplace. This objective, measurement based approach also gradually spread to encompass nearly all aspects of organizational performance.

Key performance indicators are carefully selected parameters that allow managers to obtain an objective grasp of their organization’s condition and performance. By their nature, these indicators are specific to whatever aspect of the organization’s performance is under consideration. This is because, naturally, different parameters are involved in there different aspects.

For instance, on the financial side of matters, what is important are cash flows, profit margins, and total costs. On the customer service side, however, customer satisfaction metrics such as percentage of return customers become more prominent. It can be seen how the KPI concept is very flexible, and potentially very useful.

Now, logistics is an important aspect of many organizations, especially manufacturers, suppliers, and retailers. Logistics deals with handling the flow of raw materials, in-process items, and products from suppliers to consumers. The exact components of the logistics process will vary from organization to organization, but there are some commonly accepted key performance indicators enumerated below.

Cycle times such as manufacturing cycle time, purchasing cycle time, customer order promised and actual cycle times are of course important. These measure how quickly the various steps in the logistics process are completed. Usually, the management goal is to make these cycle times as quick as is reasonable - the different cycle times have to be coordinated for their respective processes to work well together.

DPMO stands for defects per million opportunities, and represents an important performance indicator in manufacturing processes. The critical issue here is to be able to appropriately identify what exactly constitutes a defect. Some “defects” may barely have an effect on the end-product, while others may call for reworking or even scrapping. Once the defect threshold has been set, measurement becomes possible. Once again the goal is to be able to reduce the DPMO to a tolerable level, usually anywhere from 3 to 5 DPMO.

Some financial logistics KPI include gross margin return on inventory, inventory carrying rate, and inventory carrying costs. These indicators can help ensure that the logistics process is not running at a loss, and is as cost-efficient as possible.

There are many other possible key performance indicators to help quantify and subsequently manage organizational logistics. But apart from simply measuring performance, what is helpful is to benchmark, or to compare KPI’s with similar organizations. In this manner, managers get a clear idea of how other companies are faring, and how their own company is doing in comparison. This can then provide impetus for necessary changes, in order for the company to become more competitive. The proper use of logistics KPI’s, among other KPI’s, can mean the difference between a struggling business and a successful one.

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