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Get Buy In For Social Media

FreeDigitalPhotos.net

FreeDigitalPhotos.net

I recently returned from the Inbound Marketing Summit (IMS09) in Boston and had the chance to meet several social media junkies; many of them already had the support of their management teams. However, I know that we are in the minority and many of you are still trying to get positive support to use social media in your business.  It’s kind of like putting together the pieces to a puzzle that looks complicated at first, but afterwards it seems far simpler.

 Here are my thoughts on a couple of the objections I heard from you in regards to return on investment (ROI).

 You can’t show ROI in social media – While it is true that tracking ROI in social media is not as clear cut as other channels, you can absolutely track ROI. It does require an engaged IT team to connect your social media monitoring tool (I like Radian6) with your CRM, making it not only possible, but realistic.  And trust me, ROI is extremely important; you’ll never hear me say otherwise.  However, there are some misnomers that you need to be aware of if you are getting ready to fight this battle.

Prospecting – First, the sales cycle is likely to be longer if your first engagement with a prospect is through social media. Why? First, because you aren’t out their pimping your services to everyone who will listen. Instead you are building relationships hoping that if your products and services fit your new “friends” needs they will consider you. Also, you might be engaging them long before they’ve searched for a solution or even know they need one. This part of the research phase typically doesn’t include any involvement by your company and is handled solely in the minds of your consumers. At some point they will decide they need a solution and likely do some sort of search and you hope that they think of or remember you. Direct intervention in the pre-research stage of the sales cycle has always been out of reach for businesses. Because of this millions get spent for “branding” campaigns, all aimed at trying to increase recall of your brand. Now you have a chance to engage people and be on their minds while they are in the “thought” stage.  To me, not participating in the discussion at this stage is nuts. The ROI will be there if you do your job well in social media, but the close rate and time to buy may be different. So what do you say to that disbeliever?

Well, I liken this to a sales executive telling you not to make that phone call or sales call to a prospect unless you know for sure you are going to get the sale. Could you imagine having to prove out the ROI before you could make the call? That’s ridiculous, and so is not participating in discussions about your industry and your brand within social media channels.

Customer Service – Second, when looking at the benefits of using social media to provide better customer service it can get really dicey. Many times, the revenue is already in the door, but you are looking to build relationships for future purchases. If you were to put the customer service provided in conjunction with social media, up against your traditional customer service channels I believe you would see that it increases efficiency within your service team. I believe the ROI will be the same as with any customer service channel that provides superior service. I won’t go into what would happen if you were providing cruddy service before. If you were to measure the incremental lift in future business when comparing both channels of service, that would be your ROI for social media. If you also showed the value of a more efficient service model, you’d be golden. But you haven’t sold your executive yet. So what can you say to that skeptic?

If our phones in customer service were ringing off the hook, would you tell our agents not to answer them unless they could prove they would lead to future sales? Of course not. So why can’t we answer the phone? It’s ringing…it just happens to be in cyberspace.

The bottom line is that if you can put social media into the perspective of the current things you are doing within the organization, you may have an easier time selling social media through. And if you can talk of social media with stories related to the first time your company tried another new selling method such as a telesales force or even their first e-commerce site, hopefully they’ll remember that the beginning was slow but the ROI came. It might be a different volume of ROI and it might be a different conversion rate, but it’s there. And it will be for social media too. Good luck! Please share your story in the comments section.

Image provided via Free Stock Photos for websites – FreeDigitalPhotos.net

IMS09 Takeaways

At IMS09 with Brian Solis

At IMS09 with Brian Solis

I came to Boston knowing that I was going to meet amazing social media folks and learn some amazing things. What I didn’t know is that I would also develop amazing friendships that I will carry long past the 2 day summit. And that really is the interesting thing isn’t it. We spent 2 days talking about social media and how people are people are using it to exist and participate in conversations where their customers are. We heard case studies, talked with thought leaders, and a lot of authors as it turns out and at the end of the day it all came down to one thing for me.

 

 

Social media is a tool that helps you develop deeper relationships with your customers and prospects. The relationship is truly what it is all about as has been true for the last 100 years. I really loved Shiv Singhs modification of Peter F. Drucker’s quote “The purpose of business is to create and keep a customer.” Shiv said, ” The purpose of business is to create a customer that creates a customer.”  That doesn’t happen if you don’t have a relationship.

“The difference is that social media makes the distance between you and your customers nill”, stated brilliantly by Tim Walker. Why? Because you can easily SEE what they are saying, WHEN they are saying it, WHERE they are saying it and WHO they are saying it to.  Marketers in the 50’s would’ve gone biserk over this type of information. And knowing what is being said about your brand is critical. But the most important thing is WHAT you do next.

There was a lot of talk about listening at the summit. And I agree with the speakers if you aren’t listening you are an idiot. It’s too easy to not be doing it. The question is when do you engage?

Are people complaining about your brand? A simple How Can I Help You can go a long way, “the first thing to do is answer the phone and say how can I help you” from David Alston. Chris Brogan and Julien Smith’s 3 A’s that they define in Trust Agents are a great way to manage complaints. “Acknowledge, Apologize and Act.” This really goes into the authenticity theory. Actually care that people had a bad experience and FIX IT! It’s amazing how fixing someone’s problem will deepen your relationship with them. If you can’t fix it, be honest about it.

Are people raving about your brand? “Always say thank you when someone praises your brand online.” Another great thought from David Alston.

This really is simple stuff. It’s not rocket surgery as Chris said. But we all know that it does sound really simple but in practice it can get really complicated…really quick. Questions like how do you get buy in? How do you assemble your team? What do you do when you make a mistake? There were great insights into this as well. I’ll cover some of the tips on that in my next post!

Thank you to all of the presenters who really are game changers and some of the most down to earth, genuine people I’ve met. And of course to Justin Levy and Chris Brogan who gave us the opportunity to connect. And the real magic happened with the attendees who connected over a few drinks and forged friendships.

If you missed it go to slideshare and search for IMS09. Most of the presentations are there.

Creating A Social Media Value Index

The question of the day is how do you measure social media? It’s the question brimming on every marketers mind as we look at how social media will fit into our current marketing mix. Because let’s face it, if you aren’t looking at social media you might just be left in the dust. So for those of you who are trying to tackle this daunting task, I’ve put together a few tips and a social media value index model that you can use to guide you in the process.

In looking at the #smroi conversations on Twitter recently, one of the big discussions is the ongoing debate of whether or not social media will prove a positive ROI.  In addition, there are many who are using ROI to talk about value rather than an actual monetary return and it is causing confusion about the true value that social media can bring to an organization and how to explain it to stakeholders in a meaningful way.

To get started you need to develop a plan. I’m not a huge believer in the let’s try it and see what happens strategy. Not that you can’t try and see, but the trying it out should lead to a well-defined plan. There are four-steps to creating your plan.

  1. Define Goals and Objectives
  2. Align Strategies to Meet Goals and Objectives
  3. Create Metrics to Measure Success
  4. Develop Execution Plan

As I’ve said in my previous posts, I focus on three core goals. Will you use social media to retain existing customers, generate brand awareness and/or acquire new customers? For social media newcomers, I’d be very cautious about starting a social media plan geared towards acquiring new customers. This takes finesse that comes with experience and I’d wait until you’ve mastered the other two before broaching customer acquisition. Once you have determined what your goal for social media is, you can then start to align strategies with those goals, determine how you will measure if those strategies are successful, and put together a plan for execution. I’m not going to spend much time on those areas in this post, perhaps in a future post if readers are interested. Rather, I’m going to focus on how to create a model to measure success and then give you some ideas on different metrics you can use to build your model.

In order to be able to explain the value of social media to your stakeholders I prefer to use Key Performance Indicators as the term of choice.  Mainly because this is a standard term that people are familiar with and you don’t have to do a lot of explaining about what it means.

Social Media KPIs
Social Media KPIs

So here I’ve defined 10 Key Performance Indicators for social media and I ranked them in importance from 1 to 10. Then I assigned a weight to each ranking.

Click here for the full list. Social Media KPIs

Social Media Monthly Worksheet
Social Media Monthly Worksheet

Then I took the 10 KPIs and put in metrics for how to measure them on a monthly basis. For each one I used a baseline measure of 0-1 either through doing a percent to goal or a ratio. I used a 1,000 point system to determine where I stand on each of the measure and apply the weight to determine how many points each measure received. The actual formula is (Score on 0-1 scale)*(Percent Weight*1000) to determine the number of points that indicator received for the month. To see the full worksheet click here. Social Media Value Index Worksheet 

Finally, I took the sum of each KPI score as the total for the Social Media Value Index. This gives you a baseline measure for how the all of your social media activities are performing over time. The closer you get to 1,000 the better closer you are to reaching your goals.

Social Media Value Index Score

Social Media Value Index Score

You can chose any key performance indicator that you believe adds value to the organization. You can also choose more than 10 if you like. I chose to use ROI as one of my KPIs, but on its own I don’t think it tells the whole story, which is why I developed this model. Choosing your KPIs may be the hardest part. So I’ve included some ideas of what you can measure below.

Twitter

  • Number of Followers
  • Number of People You Follow
  • Relevance of Followers (I only follow people that are relevant and use a ratio of followers to those I follow to measure this)
  • Number of Retweets
  • Number of @replies to you/from you (you can do a ratio here also)
  • Number of Clicks on Links Posted
  • Twinfluence metrics
  • Twitter Grade

Social Networks i.e. LinkedIn, Ning, FaceBook, MySpace

  • Number of Connections Made
  • Number of Discussions
  • Number of Comments
  • Number of Groups Participated In
  • Level of Involvement in Groups

Video Sharing/Live Webcasts

  • Number of Monthly Views/Attendees
  • Monthly Average of Views/Attendees
  • Number of Linkbacks to Videos

There are many more I could list here. Joe LaTona did a really nice job of providing a list to start from in his “What Are Your Social Media Goals” post.

Now that you have your plan it’s time to execute, measure, and refine!

I’m interested in hearing your thoughts on how you are measuring, suggestions you have for refining this model and what you would add to the list of possible KPIs.

If you would like a copy of the excel worksheets used to develop the model please email me at nikkikelly09@gmail.com and I’ll send you a copy.

Return on Marketing Investment Measurement that Works

Measure the Marketing Mix

Measure the Marketing Mix

I’ve seen a lot of buzz about marketing operations, marketing measurement and marketing ROI on blogs and Twitter lately. There are certainly very good reasons for organizations to put resources behind taking a hard look at the contributions of all of their departments including marketing. The buzz swings all the way to the left with people
claiming you can’t measure marketing and back out to the right with here’s how you measure it. What I’ve noticed is even those who claim to be able to measure, haven’t really detailed how. As we are building marketing plans and marketing strategy we must start to include measures of success that we can deliver on.

In organizations, the pressure can bring “old school” and “new school” marketing to a clearly drawn battle line. Many times I’ve heard the claim: you can’t measure __________ (fill in the blank) marketing, brand awareness, social media or anything else requested. I often wonder, do people really believe this? Or are these people just scared to be measured? This type of clear-cut measurement certainly puts a new perspective on whether or not you are a “good” marketer. It could equally be a result of people truly not knowing “how” to measure results effectively. It doesn’t help when there are a lot of theories about measurement and few true industry standards beyond “yeah we measure ROI.” Really?!? Who does it, how do they do it, when do they do it, what do you do as a result of it, and the big question…how long does it take them to pull the report together?

Many marketers are pushing the envelope at organizations and looking for ways to measure everything. The problem we are all finding is that we can measure almost everything and it’s easy to get caught with paralysis by analysis. What should you measure? How often? And what metrics really matter?

I recently read an excellent blog post called “Mapping the Marcom Mix to the Lead Funnel”. I was impressed with the thought process behind this as I have been doing a lot of work on integrating funnel management and marketing strategies for marketing and sales. This spawned what I like to call, a moment of brilliance! I admit they are sometimes fleeting, but occasionally things just align themselves in a way that provide previously unseen clarity. When I started to consider how all the activities map to the funnel, I immediately wanted to measure their impact.

So, I worked on creating a model to measure the Return on Marketing Investment. There were three core considerations to building a model that I believe would actually work.

Measure the impact of the entire marketing mix

Like many marketers I’ve tried to measure the success of individual projects and campaigns with varying levels of results. The challenge was measuring long-term, mid-term and short-term strategies and relating them to ROI.  Because, ROI is return on investment which naturally requires you to track directly to revenue mid-term and long-term strategies end up with a result that looks like it was a failure. With  strategies like Brand Awareness it is much harder to tie them to current revenue as the impact of your activities today may not pay off for several years,  yet we struggle because we are being held accountable for these activities today. Trying to measure each item individually can lead to poor decisions based on short-term results. What really matters is how is the entire marketing mix contributing to overall lead generation.  I believe the whole is truly greater than the sum of its parts in marketing.

Make sure your measures are actionable

I think it is mission critical that the data you surround yourself with represents items that you can clearly use to make better decisions. A bunch of foo foo numbers that aren’t clearly aligned with the input and the output just increase the confusion. Use measures that matter and can be used as a diagnostic tool and a success measurement tool and you’ve hit the sweet spot!

To be effective your marketing dashboard should:

  1. Enable you to identify failures
  2. Enable you to identify successes
  3. Enable you to see where those failures and successes lie within your mix and/or tell you where to dig deeper to figure it out

Don’t stop at the marketing team

In my previous experience, every position I’ve held had one purpose. To use marketing to generate more revenue and more profit for the organization. All of the best marketing in the world will fall flat if your sales team is not equipped to close the deal. Therefore, it is critical that you measure all the way through the sales organization. This is certainly not so you can point fingers at the sales team, rather it is an opportunity for more open discussions about the impact marketing is having on the organization and how sales is delivering on that impact. Never forget, we’re all in this together.

So what does this look like? As a visual person, I use graphics to help tell the story and here is what it looks like to me. Now to tie it all together, how does this deliver on the three considerations?

Measure the Marketing Mix

Measure the Marketing Mix

Measure the impact of the entire marketing mix

As you can see at the top of the funnel you are keeping track of all of the leads delivered from each type of source. I chose to do this independently by source. However, ROI is not calculated on one item, it is calculated based on all of the inputs and the resulting outputs. I went one step further, and decided to measure based on the time frame (short, medium, fast) to an anticipated purchase and the expenses for the lead nurturing that is being done for each of those groups. Certainly for you the break-down may be different. I’m a big fan of the old KISS (Keep It Simple, Stupid!) philosophy so I go with the core things that matter to both marketing and sales and that is their possibility of conversion or how “warm” are they.

Make sure your measures are actionable

The proof really is in the pudding here. By looking at this graph regularly I can identify several critical things in order to gauge success over time. First, are leads piling up in one of the tracks? If so, we aren’t moving them along effectively and need to take a look at our lead nurturing and/or sales activities in that group. Second, are there enough leads coming into the funnel to deliver the revenue we’ve forecasted for the period. Over time, you will get a better perspective of conversion rates and how many leads you need to generate a certain level of sales. This certainly helps when you need to ask for more budget $$$ to fill the pipeline. Third, from a budget perspective you can see where you spend your budget and whether or not it is delivering the leads you expected. Once you identify where the problems are you can do more investigation into that particular area simply by digging into the raw data behind the item with a simple click  instead of searching for the needle in the haystack.

Don’t stop at the marketing team

As you can see, leads are tracked all the way to revenue.  By measuring all the way through you can clearly see whether or not your marketing activities are having an impact on sales. If not, you have some work to do. If they do, how can you make it better? Or you may find that some of the activities you are spending a lot of money on are preventing you from being able to spend where you are generating the biggest results.

So go big, be bold. Measure it and see how your team stacks up. If you don’t like what you see, fix it. If you do, congratulations! Fuel an environment where old and new school thrive.

B2B Marketing| Dynamic Relevant Content will Lead the Way to Web 3.0

As web 2.0 is just starting to take hold I’m envisioning what’s next.  We have more information than we ever have about our customers and prospects.  How are we going to use it to make each experience unique? Get ready for web 3.0, it’s coming faster than you may think.

As a marketer who likes to push the envelope on creativity and innovation in the field, I’ve been doing a lot of thinking about what is going to be the next “big thing” in the industry.  I’ve also worked on many extensive web projects and have been watching the latest trends with web 2.0 and social media integration.  Well, MLK Jr. put it best, “I have a dream.”  I envision that my website experiences will be customized to me and provide me with the information I want – when I want it, the information I need – when I need it, and the information I don’t know I need or want – when I don’t realize I need or want it. I want every web experience to have an “A-ha” moment for me and extend that to my customers and prospects.

Today, we all pretty much start our web search at Google.  We type in a search term and review the organic listings which are comprised of a few things: Business listings with relevant content, Individual blog listings will relevant content, and Business sponsored content provided by individuals, think reviews etc, and then we might move over to peruse the paid search options.  If your company comes up anywhere in the organic listings(first) or paid results (second) then we’ll take a look at you.  If not, we quickly determine that you aren’t swimming with the big dogs and aren’t worth our time or the risk of our professional reputation to investigate further. Once we get to your site, you have either pointed us to a page that provides content based on our search term and/or we find ourselves needing more information. So our typical web experience may start by checking out the navigation on the page and see if we can find what we are looking for. If I’m really interested I may resort to the little search box on your site.  We type in a word that we think will deliver the result we are seeking. Depending on the sophistication of the website it either delivers a relevant result and we take a look or it doesn’t and we leave. I could get into an even lengthier discussion on what stage I am in the buying process and how it changes this, but I’ll leave that to another day.

With the advent of marketing automation we can now track every action a prospect and/or customer takes on our website and respond based on their real activities rather than information provided on a form or what they tell us they want.  This is the first step towards being able to provide relevant and actionable content.  The days of site visitors being lost in the black hole of the “unknown” are dwindling.  Through progressive customer profiles we can now collect information in little bits and reconcile it back to who you are and act accordingly.  As a marketer it truly is a beautiful thing!  Now, I have the ability to truly test, monitor, and refine campaigns and content based on your activity in ways that were impossible as little as 5 years ago.  Even more beautiful is that I can measure the results in terms of action/inaction and ultimately the Return on Marketing Investment, put simply the revenue that is returned to the organization over the investment that was required to generate that revenue.

These are huge steps forward for marketers, steps I honestly never even considered a few years ago.  At the same time, it opens new doors and new avenues to truly be able to satiate the known and unknown desires of people who WANT and NEED what my company has to offer. But as my husband would tease, like any woman I am never satisfied! 😉 I want more…I want to take it to another level…I want to drive us into a web 3.0 world now!

Why?  Because we are on the cusp and with today’s technologies it is possible.  So why wait? As Marketers we are all shifting to become content producers for our companies as we are learning that content is king, so why not take it to a new level?

Imagine producing content in bits, chunks, and larger heaps but giving it to people in the serving size that suits them best? To put it into context, perhaps you would produce an excerpt that leads to a blog post then to a mini e-book then to a technical white paper. Okay, so maybe you do it backwards and start with the  most extensive and build backwards, whatever suits your fancy.  The next question is, “What do I do with this progressively expanded content?”

Remember, those progressive customer and prospect profiles that marketing automation is allowing us to create and all the previous web activity that we are reacting to? What if we could turn that into a concept similar to a tag cloud so that we understood what truly drives THAT customer? Sure we can look at an entire segment, but the actions of the whole do not tell the story of the individual.  And web 3.0, well I’m hoping it will focus on one-to-one marketing. What does that mean? It means that the real estate  of your website can be divided into dynamically generated sections of content based on the profile of the individual and the activities you have logged for him or her. It’s Amazon’s personalized recommendations concept flipped upside down, spun around and thrown at you in a website that changes based on what you say you want, distilled by who you say you are, and refined by the actions you take over time.

What a web 3.0 site might look like

What a web 3.0 site might look like

Hard to picture? (Well, don’t knock me for my lacking graphic design skills but look at this in terms of dynamically generated content buckets that would obviously look a heck of a lot better with a web designers touch.)

As you can see, the concept is that each bucket has content that changes based on what I know about you.  I allow you to tell me if you like the content either through rating or by watching your activities and if not I try something else until I find content that you are responding to and clicking to take a deeper look.  If I find out that you really like e-books, I may show all e-books on the left side, etc.  If I find that you like 3rd party blog posts and product reviews, I may focus on showing you those.  Every time you answer the customer profile question, the next question appears.  Bits, pieces, chunks, of your “Digital Body Language,” as Steven Woods coined, add up to deliver a custom one-to-one web experience.

Now, I’m not a techie so I don’t know how to tell you to do this.  I certainly have some ideas from my web experience.  But I know it isn’t as hard as it sounds.

I certainly could be wrong, but I’m hoping that this is the direction web development starts moving and I’ll certainly be pushing it that way.  And if it finally catches,  I’ll be a customer for sure!

Where does your company stand on Web 2.0 adoption?

Cutting the Fat out of Marketing| Using Workflow Analysis and Risk Assessment to Increase Operational Efficiency

Recently, I undertook a project to review process and workflow within my department as the time it was taking to complete projects has been on the rise.  Like many of you I’m trying to do more work, with less people and efficiency has become king!  I’ve become a bit of an expert as this because this has been a challenge for most of the companies I’ve worked for.  I’ve created a systematic approach to cutting out the fat that others may benefit from, so I thought I’d share.  And I hate it when I’m trying to research and people provide general theories that are so pie in the sky that you can’t use them.  So I’ll give you everything I used and if it works for you great!  If not, let me know what challenges you are facing and I’d be happy to provide input.  And don’t worry, I’m not selling anything.  I have a great job but enjoy helping others.

So here’s my recipe for success:

Step One: Create an As-Is Value Stream, Document what you are doing now

Important:  Pick a manageable process to start with.  Don’t pick something that has tons of steps and variation the first go round.  Pick something that impacts the company’s objectives, but in a small way first.

If you are unsure of how to do this check out my post on A Picture Says a Thousands Words| Documenting Your Workflows.

Step Two: Create a Transitional Value Stream, Document inefficiencies

Look for bottlenecks in your process.  These can be areas where work seems to pile up and have heavy delay times, or areas where the work gets trapped in a loop that goes back through several times.  In marketing, this usually happens with reviews and approvals.  If your process only shows it going through once or twice that’s great, but I usually see anywhere from 4-12 times through the same circle.

Look for unnecessary steps.  Are there any steps which can be eliminated?  I see this when a company has been doing things a certain way for years and years and it has just become a habit that is hard to break.  Can any steps be combined and handled by a single individual, a single document, or a single process?

Look for steps that are happening after one another, but are not dependent.  In marketing this happens a lot with graphic design teams and copy writing team.  The designers wait to start designing until copy is final.  This is great if you have time to wait, but if you don’t the general layout template can be created independent of the final copy if you give a general word-count guideline to both groups.

Look for steps that are missing.  Sometimes there is a critical step that is not being done which causes bottlenecks later.  Perhaps it is a kick-off meeting to get everyone on the same page, or a document that could be added that would streamline the process downstream.

Look for waste.  These are parts of the process that do not add value to your customer.  Value is anything your customer is willing to pay money for.  At the end of the day, every cost that goes into a project is paid for by your customer in the cost of your product.  Is your customer willing to pay for a lengthy review process?  Probably not.  They only care if the piece you’ve created speaks to their needs and wants in a time frame that is fulfilled when they need it, not how you got it done.

I find it extremely helpful to chunk the process and break up each area that is interrelated.  Then I look at them separately, rather than as a whole.

Step 3: Brainstorm Improvements

Think about ways you can reduce or eliminate these bottlenecks.  Why is the work getting trapped there?  Is it not correct the first time its done?  If so, how can you get it done right the first time.  Are there too many people involved?  If so, kick out people who are just there to make them feel involved or change it to an FYI versus an approval.  There are many, many reasons why this happens.  Your job is to find a way to stop it or at least significantly reduce it. What steps can I eliminate?  What steps do I need to add? How can I separate non-dependent processes?  Document how you want to stream line each area you’ve noted for improvement.
 

Step 4: Create a Future State Value Stream, Document the future process

Now, go back into Visio and create your new process.  Provide timeline estimates for how long you think it will take for each new step or streamlined step.

Now, I’ve been doing this for a few years now and I’ve guessed fairly accurately along the way.  But recently I learned how to actually provide some fidelity to my guesses so I can confidently say that the future state is better than the as is state.

Step 5: Analyze Your New Process, Pseudo reality-check

Bear with me while I geek out a little. I’ve been documenting workflows for years, but never really had a way to say with any real certainty that the process was better before testing it with the team.  I’m not a huge math junkie, but I took a Risk Assessment class for my MBA and learned some ways for the non-math geek to be able to apply statistical analysis to your process.  Really cool!

So here we go, throughout this process you have put some statistics down and you’ve guessed at how much better you think it will be.  Why not take your process for a little test-drive?  I like to use the @Risk Excel plug-in by Palisade Decision Tools for this.  I assign a best-case, worst-case, and most-likely case timeframe to each step and use a PERT distribution.  Then I look for steps that are correlated and assign a correlation, .8 for strong, .5 for somewhat correlated, and -.8 for a strong inverse correlation.  Next, I use a RiskSim table to assign the probability of re-work and the timeframe re-work will take.  After I have all the inputs to the process put in, I run the simulation 20,000 iterations.  Sometimes, I find that I messed up my excel sheet and have to adjust.  But in the end, I find out some really cool stuff.

Here are some examples: Which steps in the process have the biggest impact on your total process time.  Why does that matter?  Well you know you need to really keep those in check or your process will take the maximum time to finish.  How sensitive is your process? How beneficial is it to be able to say, as a result of the simulation we can with 95% confidence expect the process to be completed +/- 1.55 days of the mean of 15 days with a 2% error margin. Pretty powerful if you ask me.

After all this is done, I put together a document to “sell” the new process.  Here’s the table of contents for the last one I did.

  • Executive Summary
  • Introduction
  • Project Definition
  • Project Background
  • Statement of Business Needs/Requirements
  • Objectives
  • Implementation Plan and Target
  • Schedule Re-occurring Review Meetings
  • Create Project Definition Document
  • Create Project Naming Convention To Facilitate Supermarket Project Assignments.
  • Separate Non-Dependant Processes’
  • Train Staff on New Process Methodologies & Get Buy-in
  • 60-Day Transition Phase
  • Process Refinement Phase
  • Project Scope and Timeframe
  • Project Details
  • Project Costs (Including Initial Support)
  • Tangible Benefits
  • Time Evaluation
  • Intangible Benefits
  • Risk Analysis
  • Sensitivity Analysis
  • Modeling Details
  • Implementation Implications/Issues

So now, what?  Prepare for objections and sell your idea.

I’ve included some sample documents below.  I’m still trying to figure out how to include the entire report and supporting excel documents that I did.  Darn, wordpress!  If you want it, email me at nikkikelly09@gmail.com and I’d be happy to share. You’ll notice my copy of @Risk is  from Loyola College where I’m working on my MBA in Marketing and discovered this valuable tool.