Measurement Program

For this next patch of assignments I will again use 'Redline Auto Service' to answer each question.

Step 1: Define your goal and objectives: Why are you launching this plan or pursuing this strategy? What is the "R" in the ROI that you are seeking to measure?

The overall goal would be to increase profits. For this specific organization I would look to measure monthly profits and compare them to previous months. Customer satisfaction is also an important component to profit so it too should be measured and compared over time. Unlike profit though customer satisfaction should not be affected by things like seasons. Because of this there should always be a goal to remain at or above a particular point.

Step 2: Define your environment, your audiences, and your role in influencing them.

The environment for this organization is mostly the Lansing surrounding and mid-Michigan area. This includes primary competitors who offer similar services. The audience is anyone who owns an automobile within this area.

Step 3: Define your investment: What will it cost? What is the "I" in ROI?

For an organization of this size the cost is actually very minimal. Profits are already monitored and can be measured quite easily with proper record keeping. Customer satisfaction on the other hand would require a bit more but should still not cost much. A few man hours a day and some materials are all it'd require. For larger organizations, especially those who don't interact personally with customers, I imagine the costs become much greater.

Step 4: Determine your benchmarks.

The benchmark in this example would be first and foremost results results for the company. Of course, if possible, measuring it to competitors would be a good benchmark also but that would be difficult to impossible in this case.

Step 5: Define your key performance indicators: What are the metrics you will report with?

Measuring the money going in and out is necessary to measure profits. Everything should be included in this including paying for parts, employees, utilities, and more. Each of these can be measured separately to also determine if there are trends in certain costs. For customer satisfaction you are measuring just that, their satisfaction. This can be broken down further but it ultimately comes down to 'how many customers would return?'

Step 6: Select the right measurement tool and vendors and collect data.

Simple computer applications can be used to measure profits. Even something as simple as Microsoft Excel. The cost of these vary from free to several thousands, but for this organization anything should work. Customer satisfaction can be accomplished through surveys. Both online, in person, phone, or through the mail can be considered. Of course online would be the cheapest but none are really that costly or time consuming.

Step 7: Turn data into action: Analyze data, draw actionable conclusions, and make recommendations.

One everything is calculated, compare it to previous months. Find then if the measurements are rising or falling. Whichever the case is discover why and decide what to change and what to keep doing.