Vision, values, aims, tactics and strategies, planning and goal setting are absolutely meaningless if their impact is not monitored and evaluated. Do you agree? How do you collect data and evaluate progress against your company’s targets?
Tesco uses a wide range of methods to collect data and evaluate progress against targets.
They have a loyalty card they called Clubcard, haven’t they? They also have their phone based research and an oline panel of customers to determine what customers want and how satisfied they are with Tesco’s performace.
Its Exec Committee assess the progress of large-scale strategies. What they do is to device ‘stretching targets’ for all their business units. How can we describe those ‘stretching targets’? They are kind of like aspirational targets for certain KPIs.
The performance of all business unit is monitored continually and reported on a monthly basis to the board of directors. How is that done? They measure the following KPIs:
- Supporting local communities
- Staff and customer fundraising
- Donate at least 1% of pre-tax profits to charities and good causes
- Buying and selling products responsibly
- From supplier viewpoint. The supplier scores Tesco (%) when asked ‘do you feel treated with respect?’
- Caring for the environment
- Carbon emissions (CO2e) reduced from new stores built after 2006
- Providing customers and employees with healthy options
- Active customers and employees
- Creating good jobs and careers
- Tesco has a ‘Options Scheme’ programme, and they measure how many employees (%) are being trained for their next job at a given moment in time.
ACTIVITY
What principles could you extrapolate to your business when it comes to monitoring performance in your business? Please explain. Write your answers in a comment at the end of this post.
KPI – Key Performance Indicator.
Read ‘The Every Little Helps’ business strategy – Part1′
Read ‘The Every Little Helps’ business strategy – Part2′