Analyzing Strategic Points of KPIs for TBL Memo

Analyzing Strategic Points of KPIs for TBL Memo

To: CEO

From: Manager, Marketing and Sales Department

Date: June 23, 2022

Subject: Analyzing Strategic Points of KPIs for TBL

Under the request of our CEO, I have been obliged with the responsibility of creating the memo below to evaluate the impacts on the company’s TBL (Triple Bottom Line) grounded on the application of new strategic KPIs. Recently, the company has given out a new SWOT analysis and CSR Initiative Letter. Using the above data, the Sales and Marketing department has generated strategic questions for every element of the TBL. The memo below will focus on three TBL elements: people, planet, and profit.

Strategic Questions

Strategic questions were generated for each TBL element to push the organization ahead while supporting the general mission statement (Longoni & Cagliano, 2018). The first TBL element focuses on the people. Considering the organization’s SWOT analysis, one of the main weaknesses of the marketing and sales department is a weak point in the different consumer groups and segments of markets. The above weak factors result in the strategic query; what can the organization do to tailor its marketing and sales techniques to extend to a lot of consumers? Our CEO aped the above strategic query in the CSR inventiveness letter by intending to evaluate new market means to establish a bigger distinct customer base.

The next TBL aspect focuses on the environment and planet. According to the SWOT assessment, there exist two threats connected to the environment. First is the threat that the beauty and health industries are putting more pressure on organizations to use more reused plastics. The other threat is that consumers are turning towards buying goods that have less effect on the environment. With the above threat, the strategic query that arises is how the organization can do to alleviate its effects on the environment. The company can possibly integrate elements like sustainable ingredients or recycled plastics in its products through the exploration of credible external suppliers.

The final element of TBL focuses on profit. There are numerous elements that can impact the profitability of an organization (Breesam & Kadhim, 2021). In our case, the strategic question is, what can the organization do to ensure its consumers remain more involved? According to the SWOT evaluation, there are multiple chances available to interact with more customers. Such opportunities include a growing presence on social media, improving the loyalty points initiative, and exploring new market segments.

Key Performance Indicators

            As the company tries to generate answers to the strategic questions, key performance indicators (KPIs) can help in evaluating the effectiveness of the organization in reaching the TBL strategic objective it has set (Hill, Jones, & Schilling, 2019). The first is how the organization can personalize its marketing and sales techniques to meet the desires of a wider number of consumers. Based on the findings of the SWOT assessment, some of the significant weaknesses of the organization include the lack of segments of markets and various customer groups.

The first KPI would determine the consumers’ percentage across various demographics, which include gender or age. The above details can be obtained from the loyalty or membership programs (Longoni & Cagliano, 2018). The following KPI would evaluate the proportion of various goods sold by location of stores. The sales and marketing sectors can utilize information from both KPIs to get a great idea of the recent customer base and adjust future marketing accordingly to reach more different segments of customers. If the sales and marketing department is fruitful in their attempts, then the KPIs would result in more consumer diversity and product sales in a given time.

To alleviate the environmental impacts of the company and remain consistent with the organization’s intention to promote and use a reusing and recycling platform, the following KPI would be measuring the percentage of recycled plastic packaging utilized in every product of the organization (Księżak & Fischbach, 2018). The firm would work directly with credible external suppliers to get recycled plastics that it would use in numerous product packaging. The sales and marketing department could apply information from the above percentage to inform the consumers about the actions the organization is taking to become more conscious of the environment.

Based on the SWOT assessment findings, the organization has a high retention of loyal clients. However, the above may appear not to be adequate to ensure that the company gains more profits. The engagement of customers is critical in elevating goods sales. The above can begin as soon as a customer mentions the company’s name on social media (Longoni & Cagliano, 2018). For the company to improve its customer engagement, especially on social media, the organization must create a position for a social media coordinator. The above will generally help improve the presence of the company on social media. The social media referral traffic reflects the number of times a possible client follows the link from the company’s social media pages to the company’s website. The above periodic will enable the firm to maximize its content on social media and create interest in the company’s goods to transform them into possible sales (Księżak & Fischbach, 2018).

Measuring the Key Performance Indicators

When considering the people element of TBL, it is critical to remember that retaining existing customers and striving to acquire new ones is significant to ensure the success of the long-term goals of the organization. Analyzing and leveraging the data or measurements of customer growth and customer repeat are KPIs of how successful the company’s initiatives have been (Hristov & Chirico, 2019). The database the company could use to evaluate the above measurements is its start date for the initiatives. After the completion of the transformations, the company will be able to determine the number of customers it has lost, how often the company’s customers are repeat buyers, and how frequently the above initiatives have helped the company obtain new customers. The above details will help the sales and marketing teams adjust the company’s goals and modify initiatives to go beyond the identified metrics while determining places of focus to keep the consumers satisfied.

The other element the company would focus on the planet is guaranteeing that it has a limited environmental pollution footprint. Employing the KPIs discussed above will assist the company in achieving the above by mitigating the volume of non-sustainable goods the company uses to produce its products (Hristov & Chirico, 2019). To measure the above element, the company will review its order history to guarantee it orders products that have little or no negative impact on the environment. The company will consider plastics that do not use a high recyclable percentage. In addition, the above elements can be measured by evaluating the volume of recyclables in use currently compared to those used in the past.

Lastly, the organization will measure its profitability by guaranteeing that its rates improve both in the mean revenue per customer and recurring revenue rate data sets. Constant increases in both categories above indicate that the firm is sustaining constant and consistent growth in revenue. The above further demonstrates that the organization is surpassing expected profit margins for the financial year of the new initiatives. If customers are highly satisfied, they will purchase more from the organization more often. The organization can determine the above execution of consumer loyalty and reward initiatives. Subsequently, this could promote the data for mean revenue per user and recurring revenue data sets.

Functional Considerations Related to TBL

            When evaluating the functional considerations associated with TBL, various factors, both internal and external, play a critical role in the overall fruitfulness. Factors such as staffing concerns, government regulations, and customer reception, among others, influence the outcome of a company. A company must address every situation and strive to guarantee success in the strategic execution of TBL (Hill, Jones, & Schilling, 2019). Sales and marketing departments are no exception. On the contrary, the two are usually interchangeable. The above is a plus since it makes the effectiveness measurement easy in regard to the TBL. In this approach, the marketing team is responsible for effectively gathering revenue for the company through creating campaigns to promote products, community participation, and driving customer loyalty initiatives. On the other hand, the sales team collects and evaluates data produced by marketing initiatives. The team reports the above data to the company, and the data is used as a tool to make the company more efficient.

As the organization changes to TBL in the following three years, it is significant for the marketing and sales team to work collaboratively to guarantee a fruitful turnover. In the initial phase of the TBL transition, the sales department would be tasked with accumulating baseline data like demographics of the consumer, highest-selling goods, the volume of goods sold by store locations, and many others. The team would share the above information with the market group to generate a well-designed good promotion technique to reach a more diverse customer base via avenues such as social media platforms. Effective communication between the marketing and sales teams will make sure that the company executes plans appropriately and that the company can make any necessary strategic changes on time and with adequate support. The sales and marketing departments would be responsible for overseeing the various KPIs and guaranteeing the organization is headed in the best direction.

Furthermore, as the organization strives to explore new markets, it must ascertain that it is aware of any cultural considerations. Comprehending the differences between cultures and being conscious of the differences will be critical in the efforts of the sales and marketing teams (Hill, Jones, & Schilling, 2019). The sales and marketing teams should be trained to have a better understanding of diversity, inclusion, and equity. If the company coaches its team earlier, it can avoid any issues that may arise along the way as it pursues its new efforts, such as social media presence, sales growth, and marketing (Księżak & Fischbach, 2018). As a result, this will assist the company in attaining more remarkable success and attaining a more robust and diverse workforce.

References

Breesam, H. K., & Kadhim Jawad, Z. A. (2021). Application of the Triple Bottom Line (TBL) concept to measure the maintenance performance of buildings. IOP Conference Series: Materials Science and Engineering, 1090(1), 012079. https://doi.org/10.1088/1757-899x/1090/1/012079

Hill, C. W. L., Jones, G. R., & Schilling, M. A. (2019). Strategic management: an integrated approach: theory et cases (13th ed.). Boston, Ma Cengage Learning.

Hristov, I., & Chirico, A. (2019). The Role of Sustainability Key Performance Indicators (KPIs) in Implementing Sustainable Strategies. Sustainability, 11(20), 5742. https://doi.org/10.3390/su11205742

Księżak, P., & Fischbach, B. (2018). Triple Bottom Line: The Pillars of CSR. Journal of Corporate Responsibility and Leadership, 4(3), 95. https://doi.org/10.12775/jcrl.2017.018

Longoni, A., & Cagliano, R. (2018). Sustainable Innovativeness and the Triple Bottom Line: The Role of Organizational Time Perspective. Journal of Business Ethics, 151(4), 1097–1120. https://doi.org/10.1007/s10551-016-3239-y

ORDER A PLAGIARISM-FREE PAPER HERE

We’ll write everything from scratch

Analyzing Strategic Points of KPIs for TBL Memo

In this project, you will demonstrate your mastery of the following competency:

Determine the impact of proposed strategic decisions across departments
Scenario
You work for a global health and beauty company that has decided to move to a strategic focus on the triple bottom line (TBL). TBL means it will measure its success based on people, planet, and profit rather than profit alone. This strategic decision is based on a desire to be true to the company’s mission and vision and because engaging in corporate social responsibility (CSR) will make the company more successful.

The company’s objective is to transition from its current business model to CSR and TBL in three years. If the company successfully makes this transition, it would be the first in its industry to do so. This would create a first-mover advantage. As part of the TBL focus, the company CEO has asked each departmental manager to conduct a SWOT analysis of how transitioning to TBL will affect their departments.

You work in a rewards/membership product line that offers discounts, special services, and other benefits to customers for maintaining a fee-based membership in the company’s membership rewards program. Now that the CEO has collected the SWOT analyses from all company departments, she has asked you to focus on how the TBL project will impact two cross-functional departments for your product line: marketing and sales.

To allow you to do the analysis she requires, your CEO has provided you with the following documents:

Her letter outlining the company’s commitment to CSR and its plans for using TBL
The company’s vision, mission, and values statements
The company’s triple-bottom-line strategies document
Two SWOT analyses: one for marketing, one for sales
The CEO wants you to use this information to create key performance indicators (KPIs) to measure your product line’s progress in meeting the company’s CSR goals.

Directions
Your CEO has requested that you develop a memo that outlines the strategic KPIs for TBL in sales and marketing. She has asked that each of the following tasks be clearly communicated in the memo and that they be addressed in the order given.

Develop one strategic question for each element of TBL: people, planet, and profit. These questions should give insights on how to measure the sales and marketing department’s success in achieving the company’s goals. As you develop your strategic questions, follow these guidelines:
Consider how each question relates to your interpretation of the provided SWOT analyses.
Consider how each question will help achieve the CSR goals outlined in the CEO’s letter.
For your strategic questions, identify key performance indicators (KPIs) of successful strategy development and implementation.
Identify at least one KPI for each strategic question you provided.
Explain how the KPIs will be measured.
How will your KPIs help the company achieve its goals?
Identify functional considerations related to TBL.
How does the interconnectedness of the sales and marketing departments impact the measurement of TBL?
This memo will be shared with your CEO and other stakeholders. So, please check the memo for spelling and grammar.

What to Submit
To complete this project, you must submit the following Word Document:

A KPI Strategy Memo
In a Word document, use double-spacing, 12-point Times New Roman font, and one-inch margins. This assignment should be no more than 6 pages in length and should include references cited in APA format. Consult the Shapiro Library APA Style Guide for more information on citations.