Measuring Success KPIs, OKRs, or OBAs plus ROI

 Well done to Visit Jersey and everyone participating in the showcase of Jersey on TV's The Apprentice.

I am a huge fan of data-driven decision-making and certainly seeing measures of progress and performance, whether these are KPIs, OKRs, or OBAs. The key thing, I think, in business, is to ensure that efforts are rewarded, and so any expenditure should somehow produce a ROI. That may or may not be a financial return, but there certainly should be a reward for our efforts.

These measures show us what's working, what is effectively moving the dial on what we consider to be important and valuable, and allow us to see where more investment should be poured. For example, for every £100 spent on tourism advertising, is the return is 10,000 of GDP growth in the economy? Money well spent justifies more investment should be made.

I am delighted to see the success of tourism and the increased amount of web traffic at Visit Jersey as a consequence of the TV program The Apprentice. [a 215% increase in visitors to our website (Jersey.com) as the episode aired]

Source
https://www.linkedin.com/posts/visit-jersey_jersey-on-bbcs-the-apprentice-visit-jersey-activity-7166792332636332033-oMqc?utm_source=share&utm_medium=member_desktopa

The challenge must be to understand if that 215% increase is for that particular day, week, month, or longer. And does 215% represent 100 people, 1000 people, or 10,000?

Moreover, of those website inquiries, how many translated into booked holidays in Jersey [for day-trips, weekends, or longer holidays]? Perhaps, 100,000 website hits result in about 10,000 booked nights?

I don't know, but it would be really interesting to understand these figures as well as the demographics around them so that we can ensure that we provide the right products and services for those people. Do people on day-trips, weekends, or longer holidays spend more or less? Where do they stay (3, 4, or 5-star)? And do they spend more than their European counterparts?

It is fantastic to see a 215% increase in visitors to our website (Jersey.com), but it would be even better to see the data that can help us plan, prepare, and, hopefully, based on this success, invest more, given the clear ROI that justifies further investment.

Postscript

KPIs, OKRs, and OBAs are all different types of performance metrics used in business management:

1. KPIs (Key Performance Indicators): These are specific, measurable metrics used to evaluate the success of an organization or a particular activity within an organization. KPIs are often aligned with strategic goals and are used to track progress over time.

2. OKRs (Objectives and Key Results): OKRs are a goal-setting framework used to define and track objectives and their outcomes within an organization. Objectives are the goals to be achieved, and key results are the measurable outcomes that indicate progress toward those goals.

3. OBAs (Outcome-Based Accountability): OBAs is a management approach that focuses on achieving specific outcomes or results. It emphasizes measuring success based on the impact on the intended beneficiaries or stakeholders.

ROI (Return on Investment) is a financial metric used to evaluate the efficiency or profitability of an investment. It measures the return or gain generated from an investment relative to its cost.

NPS (Net Promoter Score) and CSat (Customer Satisfaction) are both metrics used to measure customer satisfaction and loyalty:

1. NPS: Net Promoter Score measures the likelihood of customers to recommend a company's product or service to others. It is calculated based on a single question survey asking customers how likely they are to recommend the company on a scale of 0 to 10.

2. CSat: Customer Satisfaction measures the degree to which customers are satisfied with a company's product or service. It is typically measured through surveys asking customers to rate their satisfaction on a scale.

Pros and Cons of Each Metric:

1. KPIs:
   - Pros: Provide specific and measurable targets, align with strategic goals, allow for tracking progress over time.
   - Cons: Can be overly focused on short-term results, may not capture the full complexity of organizational performance.

2. OKRs:
   - Pros: Foster alignment and focus within an organization, encourage ambitious goal-setting, emphasize measurable outcomes.
   - Cons: Can be challenging to implement effectively, may lead to too much emphasis on achieving specific metrics at the expense of broader goals.

3. OBAs:
   - Pros: Emphasize outcomes and impact, focus on the needs of beneficiaries or stakeholders, provide a clear framework for measuring success.
   - Cons: Can be difficult to define and measure outcomes accurately, may not capture the full range of factors influencing outcomes.

4. ROI:
   - Pros: Provides a clear financial measure of investment effectiveness, helps prioritize investments based on potential return.
   - Cons: May not account for intangible benefits or long-term impacts, can be influenced by external factors beyond the control of the investment.

5. NPS and CSat:
   - Pros: Provide direct feedback from customers, easy to understand and communicate, can help identify areas for improvement.
   - Cons: May not capture the full range of customer experiences, can be influenced by survey methodology or timing biases.