Thursday, May 22, 2014

How To Link Communications to Your Organization's Business Goals and Objectives (Part I: Setting Goals)

How To Link Communications to Your Organization's Business Goals and Objectives (Part I: Setting Goals)

According to research done by Jim Sinkinson, publisher of The Bulldog Reporter, one reason PR practitioners have trouble adhering to the Barcelona Principles is they don't know how to set measurable objectives. Another is they have trouble tying their results to corporate strategic objectives.

In my next two Blogs, I'll outline how to do both.

For reference, I wrote a paper with Linda Hadley on this topic for the Institute of Public Relations Commission on Measurement and Evaluation back in 1999. David Rockland, Mark Weiner and I updated that paper in 2010.

Tying Communications Results to Corporate Objectives
To tie communications results to corporate objectives, you need to start with corporate objectives. These might be:
  • Increase sales
  • Increase share price 
  • Reduce employee turnover
  • Reduce supplier costs
  • Etc.
Sometimes you can tie a communications campaign directly to a business result. But this is unusual because communications is usually only a part of what makes behavior happen. In sales, for example, price, supply, shelf placement, advertising, promotion, competition and many other factors affect a sale. With share price, management's business model and strategy must be solid, no matter how good the communication. With employee turnover, research I have done suggests an employee's immediate supervisor has a much greater effect on retaining that employee than does communications. Some sophisticated organizations are using marketing modeling programs to assess the effect of PR on sales. You can find a paper on that here.

Unique Internet Links
Another way to tie communications directly to business outcomes in our online world is to include unique links for actions. For example if you can get a "for more information" link in the material you place, make it go to a unique page. Then you can not only get credit for the information request, but you may also be able to track the person who made the request on to sales. 

The Communications Goal Link
Though we can rarely tie the effect of communications directly to achieving a business goal, we can articulate a communications goal that supports the business goal your organization is trying to achieve. Some useful questions to ask before coming up with the communications goal are:
  • Who is the target stakeholder group
  • What does the organization want this group to do (what behavior does it seek)
  • By when must this be accomplished

A Measurable Communications Goal
Let's take our first business goal as an example: Increase sales. What will increase sales depends very much on what you are selling, who you are selling it to and the general sales environment. But generally speaking, communications might help sales by increasing awareness of the product and its features. By doing homework with the sales and marketing people in your organization and by doing research on your target audience, you should be able to identify the primary barriers to sales and come up with a communications objective that should help achieve the business objective of sales. Let's say that in this case the communications goal that will support increasing sales is:
  • Increase awareness of the product.
However, that's a bit broad. A better communications goal would include a tighter definition of the target audience. Increasing awareness of the product among people who will never buy it would be wasted effort. If our sales target is U.S. women with children five-years old and younger and with household incomes of $80,000 to $150,000, we should include that in our objective. We should also note the time frame. Finally, we should put a stake in the ground and say how much we are going to increase awareness.

So a good communications goal that supports our business goal would be:
  • Increase awareness of the product by 10%
  • Among U.S. women (or women in a specified market)
    • With children five-years old and younger
    • Household incomes of $80,000 to $150,000
  • Within six months

Management Agreement On Goals
You also want to get agreement from your management that this is indeed an acceptable communications goal. Then, when you achieve it, there will be no question about whether you had done the right thing.

Do Research So You Actually Achieve Your Goal
Note, too, that you need to develop a message that appeals to and use media that reach the defined target audience. If you want to succeed, you will need to determine what these are. You may be able to get this information from your marketing and sales people, but you may need to do your own research.

Measuring Success Agains Goals
Next week I will Blog about how to measure your success against your goals.




1 comment:

Richa Sharma said...

Hi,

This was a really Nice post. thanks for providing this info.:)

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