webinar: business metrics for internal communications
TRANSCRIPT
Peter Hofmann
Business Metrics For
Internal Communications
Housekeeping
• Slides will be available on our SlideShare page; the link will be emailed to you
• The Recording of the webinar will be available to download; the link will be emailed to you
• Please take time to complete a post-webinar survey that will pop up at the end
• You can type your questions throughout the session
• Time will be allocated in the end for the speaker to address your questions
Presenter
• Peter Hofmann is an Executive Director of MFX Options and Solutions
(Pty) Ltd, specialising in business management and corporate strategic
and operational management consulting. The platform for his current
business focus was established through his exposure to the holistic
corporate business environment where he built a successful career
over two decades, having established and built up successful
departments focused on operational and executive management and
board liaison.
• His integral involvement with projects undertaken have been for a
range of international clients including strategic business plans,
functional plans and processes, supply chain management, strategic
planning and ERP process analysis for implementation of ERP systems
The role of IC employees
Source: The definitive analysis of current internal communication practice published by the Work Foundation and Communicators in Business
IC and the business strategy
Characteristics associated with strategy:
• Concerned with the scope of activities
• Matching activities to the operating environment
• Matching activities to resource capabilities
• Major resource implications
• Likely to affect operational decisions
• Affected by values and expectations of stakeholders that
have power
• Affect long-term organisational direction
Changing environment
• Practice of IC changing
• Ways of communicating “in flux”
• Corporate communications moving to organisational
conversation
• IC boosts employee engagement and improves strategic
alignment
• 4 steps to improving organisational conversation:
– Close the gap
– Promote two-way dialogue
– Engage employees in “telling the story”
– Pursue a clear agenda
Source: Harvard Business Review – May 2012
Assessing IC effectiveness
Source: The definitive analysis of current internal communication practice published by the Work Foundation and Communicators in Business
Measuring value
• Why do we measure?
• Financial metrics
• Non-financial metrics
• ESE / ESG / CSR – trends
• External drivers
• Stakeholders
• Internal customers:
– Sponsoring customer
– Contracting customer
– Consuming customer
– Influencing customer
Information
flows from
the top
down and
from the
bottom up
without
horizontal
flow First level supervisors
Board of
Directors
Senior
Management
Middle level Management
Junior management / administrators
General Workers
CEO
Communication structure
Purchased
Supplies
and
Inbound
Logistics
Primary
Activities
and
Costs
Operations
Distribution
and
Outbound
Logistics
Sales and
Marketing Service Profit
Margin
Product R & D, Technology, and Systems Development
HR, IT, Financial Management, IC
Support
Activities
and
Costs
Service departments are expected to achieve the goals identified so the
internal customers in turn can achieve their overall goals in line with the
organisational vision and strategy
Correct delivery i.e. quantity of work within a timeframe; and
specified quality within a budget constraint
Creating value
Example – Value chain
Focus on client orders, purchases to manufacture specific products and quality and customer service
Marketing Primary
Activities and
Costs
Purchased
Supplies and
Inbound
Logistics
Operations Quality Distri-
bution Profit
Margin
Support functions ……...... SHE ……..…. IC …… Support
Activities and
Costs
Service
Steel manufacturer – niche products to client order
Focus on cost efficiencies (influences competitive positioning), operational efficiencies and “pushing” products into the markets
Primary
Activities and
Costs
Purchased
Supplies and
Inbound
Logistics
Operations Sales
Distri-
bution and
outbound
logistics
Profit
Margin
Support functions ……...... SHEQ ……..…. IC …… Support
Activities and
Costs
Service
Steel manufacturer – standard products on a market-push basis
Example – Value chain
Focus on quality of service and global branding, cost efficiencies (vs. global competitors) and global alliances
Emirates (operate in a global market)
Focus on cost efficiencies on a regional basis (influences competitive positioning), operational efficiencies and “pushing” sales in the low-cost market
Primary
Activities and
Costs
Purchased
Supplies and
Inbound
Logistics
Operations
(incl. maint)
Sales and
Marketing
Safety and
Quality Profit
Margin
Support functions Support
Activities and
Costs
Service
Fly Dubai (focus on low-cost in a regional market)
Marketing
and Sales
Primary
Activities and
Costs
Purchased
Supplies and
Inbound
Logistics
Operations
(incl. maint)
Safety and
Quality Profit
Margin
Support functions Support
Activities and
Costs
Service Corp PR
Building a strategic link
Strategy
Strategic plans
Systems, processes
IC framework
What is in
place to
achieve the
plans?
What
management and
monitoring /
measurement
structures are in
place?
Where do we
want to go?
How do we
plan to get
there?
Summary
• Consider the big picture first
• Customers and stakeholders
• Key messages
• Alignment of IC strategy
• Create a common language and understanding around IC
• Beware of building an overhead mentality
• Define integrated measurables – financial and non-financial
Any Questions?