Accelerate your thought leadership by contributing to our blog. Join our community of experts now!
Learn how Kristina Simonson is leading her team in restructuring the way they approach KPI and goal setting at Privy.
Step 1: Establishing the mission of each marketing function
At Privy, the marketing team’s main goal is driving New Revenue and Expansion Enablement. To measure the progress towards that, they track 3 primary KPIs: Qualified trials, New MRR, and Brand Demand.
To help move the needle on those KPIs, they have 3 marketing functions:
So Kristina started by determining a sort of mission statement for each of these functions, in collaboration with each team. The goal was to determine the objective they’re trying to serve for the team, and for the greater business.
Brand & content – create demand around the Privy brand, increase awareness, and foster word of mouth.
Demand – acquire qualified trials and engage them to new revenue opportunity.
Product – get the market to perceive the mission Privy is on, and drive product awareness.
Step 2: Set the metrics each function owns.
Her goal here was to determine what KPIs each function should try to move the needle on, to achieve their mission. Each metric is tied to a greater business impact that team is trying to drive, like new revenue or retention.
A couple additional notes here:
Each team has no more than 3 primary metrics, in order to simplify everyone’s focus. Also, some have goals or forecasted growth around them, but others don’t – and are just monitored and reported.
Step 3: Foster team ownership of the metrics.
Kristina works with each team during the planning phase to get an idea of how they think they can best move the needle on their metrics. The teams will also be responsible to monitor their primary metrics as they work to improve them. This allows them to proactively be aware of abnormalities or changes, and identify what the cause might be.
This 3-step restructuring provides a few benefits for Kristina’s team:
First, she wants team members to understand the business impact they’re role is driving and to feel close to their work. This draws a clear line to the mission they serve, and the value they bring. Second, she feels that by giving your team a really clear view of the metrics their role impacts, the better decisions they can make to improve those metrics. And finally, this gives team members more confidence and autonomy to really own their function and say what they want to do to move the needle (vs being handed instructions).
So what types of companies could benefit from an exercise like this?
Kristina thinks that if you’re at the point where your team isn’t feeling connected to the business impact they’re driving, that might be an indicator that you should conside a restructuring like this. Often, a team will keep growing as the company grows. But at some point, team members aren’t clear as to “why” they’re doing what they’re doing. As a result, it may be hard for them to get excited about their work if they can’t see how it’s driving significant business impact.
By going through this exercise, Kristina’s team has more clarity around the mission of their department, and is empowered to help grow Privy’s bottom line.
Get practical strategies that drive consistent growth
Latest from our blog
Popular Blog Posts
POPULAR DASHBOARD EXAMPLES & TEMPLATES