Linking KPIs to strategic goals to increase review
Businesses are creating massive amounts of data — logistics, sales, marketing, usage, and IOT data. Often these different kinds of data are captured in various systems and result in more than one source of truth for the company. Multiple data sources can create a challenge when trying to create a product strategy and an even bigger challenge when trying to define the company's financial goals.
A retail company with both online and offline activity was dealing with a common problem - their numbers didn't add up. The company's business units presented positive numbers that didn't correlate with the management financial review.
So how do you create a data language that can reflect the company's financial goals?
When setting company's KPIs, For any company, the very best KPIs are those that are linked directly to the company's strategic goals. Rather than measuring everything that can be measured, companies should select the metrics that matter most to the business. The idea was to create a new data language that is implemented from the management down to every business unit in the company. By using best practices from the digital world and defining KPIs and OKR, Raven created a process where all business elements (user types, digital assets, products, and categories) reflect the company's business goals.
The first stage of the process included deconstructing and cleansing the company's data (Unique User IDs, unique SKU, orders, pricing etc..) and connecting all the data into one warehouse. Based on the newly presented data, Raven was able to showcase the company with its most profitable products and thus offer relevant marketing opportunities. By creating the data warehouse, Raven was also able to present an accurate overview of the financial information of all business units. finally, Raven created a management dashboard that not only presented the information visually but also served as the foundation of the company's new P&L strategy.
Raven's work process impacted the company's core business strategy and allowed it to start operating in an agile matter. With the single source of truth for the financial metrics, the company was able to stream information between management and business units smoothly and coherently. Raven's work led to a cost reduction of 20% in the companies operations and a 13% increment in sales.