Product evolution is a very critical part of business as it accelerates customer satisfaction, builds loyalty and drives growth. The performance and the results obtained from the scorecard analysis can help companies to understand their customer needs better and provide solutions that address the issues. Let us see some of the highlights of this evolution process and its significance in terms of measurement of PES and adoption.
– The scorecard helps to measure four key areas vital for the successful evolution of the product. These are: Brand, Performance, Revenue and Place. These four topics are interrelated and can be improved further by grouping them with each other on the scorecard. When these four topics are well measured, it becomes easier to understand and analyze the performance of the company.
– Companies that do not have a scorecard with these four topics at hand, might be heading to trouble. They will have to use internal resources to collate and organize information to get a proper picture of how their products are performing. This will make it easier for them to evaluate and adjust strategies and tactics accordingly.
– Metrics and measures are very important for the success of the company. They should be dynamic and should be updated regularly. They need to be designed and created keeping in mind the fast-changing global markets and expectations. The metrics and measures must also be able to evolve along with the company’s strategy and plans so that they can respond to changing market conditions and at the same time provide the necessary feedback.
– These measures and metrics will allow the managers to set the benchmark for future growth. They can then identify the actions that need to be taken to ensure maximum productivity and profit. A clear understanding of the drivers that contribute to growth is also important. The managers can then establish whether to focus more on improving one particular process or to improve all processes.
– A competitive analysis is also vital. Competitive performance is influenced by many factors and there are many definitions that go into defining a competitive environment. It is therefore imperative for a manager to define and measure his company’s competitive strengths and weaknesses. He should not only focus on the direct competition, but should also study the indirect competition as well. This way, he will be able to identify opportunities as well as threats and hence develop strategies that will take his organization closer to its goal.
– In the evolution of the KPIs, the management should always consider two things – the nature and the quality of the competitors’. The nature refers to the core strengths and capabilities that your business has. The quality, on the other hand, refers to the output that you can provide to the customers. If the competitors are providing better services and products, then you should try to create more opportunities for improvement. However, if the same products and services are being provided by the competitors, then you should identify opportunities for improvement.
– The third factor that is crucial is to identify which KPIs should be included in the scorecard. Usually, managers only list those KPIs that have direct impact on the revenue. However, this is not the case here. The scorecard should be analyzed to identify the KPIs that indirectly contribute to the company’s revenues. In addition, the same analysis should be done for the customer KPIs, the internal KPIs and the corporate KPIs.
– The fourth and the last is to compare the performance of the scorecard with the company’s objectives. When a company has a defined set of KPIs, it would be easier to measure their progress or failure. This can also help them evaluate whether they are on the right track or not. In addition, the KPIs can also be used as targets. By setting a specific target, the managers can evaluate whether they have achieved the desired level of performance.
– Although there are many types of scorecards available, it is still best to use one that is recognized by the major stakeholders. This will help determine which measure would be most applicable. This would eliminate the possibility of measuring things that are not relevant to the company’s goals. It is also important to make sure that the KPIs that you will choose will actually help the company achieve its goals. If there are other KPIs that can achieve the goals of the scorecard, the chosen type should be adjusted to fit better with the company’s objectives.
– The next thing to do after formulating the scorecard for the evolution of the brand is to design the content. The key performance indicators that need to be measured should be based on what is actually happening in the organization. The information should also show the results of the efforts that have been made to increase productivity. Furthermore, the key performance indicators must be monitored and validated periodically. The data and the information gathered from the KPI dashboard should be translated into the operational procedures that will be put into effect to monitor and control the productivity gains of the company. This will then allow for the evaluation of whether or not the measures that were done are effective.