Example 1
In this example, consider the case where you have a strategy, Hard-hitting PR Campaign, with two tactics supporting it.
For the first tactic, 400 press mentions per year if measured quarterly would be 100 per quarter, assume its actual value was 90 for the first quarter. Thus, its activity value for the first quarter was 90%.
For the second tactic, 24 feature articles per year, assume the target was to do 6 the first quarter but only 3 were done. Its activity value was 50%.
In order to measure how well this strategy is doing, you need to consider how the supporting tactics are doing. Table 2 illustrates the calculations. Each of these tactics contributes evenly to the strategy and has a 50% weight. The activity value associated with a tactic is multiplied by their contributing weights. Then these values for the two tactics are used in a weighted average to obtain a value for how the parent is doing.
If these two tactics had equal weight (50%) in contributing to the parent strategy, the parent performance value would be 70% for the first quarter. If the contribution weights were 90 and 10 respectively, then the performance value would be 86%.
Calculating activity value
Unit=Marketing, Period=Quarter 1, Accumulation Method=Current
| Object | Contributing weight | Actual | Target | Activity | Calculation |
|---|---|---|---|---|---|
| 400 press mentions per year | 50% | 90 | 100 | 90% | 90/100 = 90% |
| 24 feature articles per year | 50% | 3 | 6 | 50% | 3/6 = 50% |
| PR Campaign | 70% |
((50%*90%)+ (50%*50%) = 70% |
This shows the activity value looking at only the selected period - the first quarter. But you could look at this based on a different accumulation method: Total Year. In that case instead of only looking at targets and actuals for Quarter 1, it compares targets for all periods for the year against the actuals produced up to and including the selected period Quarter1. As the measure was defined to have values accumulate throughout the year, the actual value is 90 out of the total target of 400. Using the calculation process this gives an activity value of 22.5%. For feature articles there were 3 out of 24 for the year for an activity value of 12.5%. Doing the same calculations as above yields the activity value of this strategy for Total Year to be 17.5%.