Monday, March 3, 2014

What you get is a function of what you do

What you get is a function of what you do

In previous blogs we’ve talked about defining goals and identifying metrics that are critical to measuring success. Now let’s look at this in more detail, using a key Six Sigma process as applied to Marketing.

The general formula we use is:

Y = f (X)

In Six Sigma terms, the letter “Y” is used to designate a goal in relation to a process.  In layman’s terms, you could simply say that what you get (Y) is a function (f) of what you do (X).

So, if what you do is erect a billboard with a marketing message, what you get will be a function of the people who see the billboard, and their reactions to the message. This may be a call to action (such as calling a toll-free number or pulling off the highway to your gas station), or it may be increased product awareness or any number of goals.

This is a very simplified example, but it aligns with our earlier discussions, stating that a goal must be stated in finite terms, with specific metrics that will define success – how many calls were made to the toll-free number, how many transactions were conducted at the gas station, etc.

A general objective of “getting more business” could be broken into the underlying goals of “reducing cancellations,” “recruiting new customers” or “selling additional services to existing customers.”

There will of course be many, many business goals in any complex company’s operations. Here are some key questions for each goal:


  • What would be the ideal outcome?
  • How do we know if the goal is being affected?
  • How do we measure the long-term and short-term performance against the goal?

No comments:

Post a Comment