The plan focuses on evaluating the success of strategic programs through key metrics. These metrics, such as Return on Investment (ROI), are pivotal in determining the profitability by comparing returns to costs. For instance, achieving an ROI of 15% or more is considered robust and can be boosted by strategies like enhancing program profitability through cost control and revenue increment.
Net Promoter Score (NPS) and Stakeholder Engagement metrics help assess satisfaction and involvement levels, highlighting customer loyalty and stakeholder participation. Scores above 50 on NPS indicate high satisfaction, which can be attained by improving program quality and communication.
Additionally, the Cost-Benefit Analysis helps compare program costs and benefits, while the Goal Achievement Rate measures how effectively strategic targets are met. Together, these metrics inform decisions and enhance programs' effectiveness through various improvements, such as optimizing resources and engaging stakeholders.
Top 5 metrics for Success of Strategic Programs
1. Return on Investment (ROI)
Measures the profitability of a strategic program by comparing the returns to the costs. It is calculated as (Net Profit / Cost of Investment) * 100.
What good looks like for this metric: Typically, a good ROI is 15% or more
How to improve this metric:- Enhance profitability through cost control
- Increase revenue from the program
- Extend program's lifecycle
- Improve marketing efforts
- Optimize resource allocation
2. Net Promoter Score (NPS)
Evaluates customer or stakeholder satisfaction and loyalty by asking how likely they are to recommend the program to others. Scored from -100 to 100.
What good looks like for this metric: Scores above 50 are considered excellent
How to improve this metric:- Improve customer service and support
- Enhance program quality
- Solicit and act on feedback
- Create engagement incentives
- Improve communication clarity
3. Stakeholder Engagement
Measures the level of stakeholder participation and involvement in the strategic program.
What good looks like for this metric: Varies; should aim for more than 70% active engagement
How to improve this metric:- Increase communication frequency
- Include stakeholders in decision-making
- Provide regular updates
- Use varied engagement channels
- Host interactive workshops
4. Cost-Benefit Analysis
Compares the costs and benefits of the program to determine value. A higher ratio indicates a more beneficial program.
What good looks like for this metric: A ratio above 1 signifies positive value
How to improve this metric:- Really evaluate benefits accurately
- Regularly review costs
- Negotiate supplier agreements
- Streamline operations
- Assess risk mitigation strategies
5. Goal Achievement Rate
Measures the percentage of strategic targets met within a specific timeframe. Calculated as (Achieved Goals / Total Goals) * 100.
What good looks like for this metric: 70% or higher is desirable
How to improve this metric:- Set realistic targets
- Continuously monitor progress
- Adjust strategies as needed
- Encourage team collaboration
- Provide necessary resources
How to track Success of Strategic Programs metrics
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your metrics.
