Lean Strategic KPI – Sales and Marketing Change

Lean Six Sigma Policy Deployment – Accountability KPI in Sales and Marketing

In a strategic lean organization, the goals or stakes in the ground must meet the clear measurable criteria tied back to the goals of the organization. These measurable criteria must be tracked and meaningful corrective action taken addressing the root cause issue with a specified person accountable for the results.

Critical Components – Making KPIs Work in Sales / Marketing

The components of these KPIs as part of the organization’s overall policy deployment are linked by number reference to a specific component of the company’s strategic plan and goals. These goals should be quantifiable but achievable:

A bad example of a strategic plan statement: Improve sales over the next three years.
A good strategic plan statement: Improve profitable engineered product sales by 10% CAGR, twice the market growth rate over the next three years.

The second strategic statement provides the opportunity for clear and definable action plans. The focus is narrowed and targeted using the engineered product segment. The statement has a qualitative aspect in the word profitable. Finally the goal provides a context for the goal by utilizing twice the market growth rate.

Focused written action oriented KPI descriptions need to be deployed. These descriptions are action oriented, clear and unambiguous. Each KPI must be data driven and objective. Using the good strategic plan let’s develop a marketing and sales KPI:

Sales KPI that poorly drives the Company’s policy deployment might be: Increase sales by ten percent.
A good example of the sales KPI would be: Drive new engineered sales at targeted accounts resulting in ten percent increase in sales.

Identify the accountable person for the KPI. This selection is critical. The individual must have the authority and resources to accomplish the goal. Too often in organizations responsibility for a KPI is given to an individual who cannot marshal the resources to achieve success.

Lean Strategic Policy Deployment KPI – Impact Business Success

Marketing puts the product on the shelf and raises the awareness of the customer of the need. Sales is the function that encourages the customer to take the product off the shelf through a profitable purchase. Ongoing sales and the value added of building relationships depends on the strategic deployment of policy. The success of this policy deployment relies on clear definition of the objectives and the KPI that measure success.

In a strategic lean organization, the goals or stakes in the ground must meet the clear measurable criteria tied back to the goals of the organization. These measurable criteria must be tracked and meaningful corrective action taken addressing the root cause issue with a specified person accountable for the results.