Making a Difference?: Prove It
Did I make a difference today?
This is a question, I often ask myself as a Chamber executive. When it comes to the many roles that chamber leaders play, how do you know that you are making an impact?... in the right areas? How do you measure your chamber’s progress?
Many chambers have some sort of tracking system to measure progress on their Key Performance Indicators (KPIs). We often think of measuring the number of new members each month, retention rates, annual surplus etc., but what does a comprehensive and practical Performance Tracking System look like? What is measured, tracked and used in decision-making to improve the chamber’s performance?
What guides your Performance Tracking System?
How do you leverage data-driven insights?
Performance Tracking System Guidelines
There is no one uniform tracking system that all chambers use, but it is safe to say that in building a performance tracking system, leading chambers find these guidelines are helpful:
Member-Centred Approach: Focus on KPIs that reflect member satisfaction and engagement, as these are critical to the chamber’s success. Retention rate is an obvious choice, particularly tracking renewals following the first year of membership to determine if there are better ways to welcome members and make their membership “sticky”, that is more likely to renew.
Align with Strategic Goals: KPIs should be directly linked to the strategic objectives of the chamber. This ensures that the metrics being tracked contribute to the overall mission and vision. What is most important to your chamber this year? Don’t forget initiatives such as community impact, job creation and indicators that measure direct learning and training objectives for the membership.
Balanced Scorecard Methodology: Use a balanced scorecard approach. I found that a handful of indicators such as financial sustainability, member/account growth, engagement, impact and internal member processes were particularly helpful. It is best to prioritize those indicators that can be instructive and encourage improvement actions if necessary.
Benchmark: Compare KPIs against industry standards and other leading chambers to identify areas for improvement and set realistic targets. Sources to benchmark include ACCE’s annual operation survey and others commissioned by the Canadian Chamber Executives (CCEC). Recently, the Bogota, Colombia Chamber of Commerce put out a call to create a network of similar chambers that would agree to track and compare Net Promoter Score, looking to leverage insights that better raise the profile, impact and impression that the chamber makes in their community.
Keep It Simple and Sustainable: There are a myriad of initiatives that can be measured. Department leaders should choose a handful that are meaningful and can be easily tracked by staff. Think ahead. Think about how many indicators is reasonable for your respective team leads to track, in addition to getting the work done serving customers.
Leveraging Data-Driven Insights
What do you do with the information you’ve collected? Many corrective actions can be taken to improve performance and service to members.
Specifically, member engagement can be more personalized using data analytics to tailor communications and services to individual member needs and preferences, enhancing member satisfaction and retention. Also, analyzing marketing data to determine the most effective channels and strategies for member acquisition and engagement to optimize your marketing efforts. Further, on more of a predictive front, you can use historical data to predict future trends in membership, revenue, and engagement, enabling proactive decision-making. Data analysis to uncover new opportunities for growth, such as underserved member segments or emerging industry trends is also a valuable benefit of a performance tracking system.
The old adage that “You can’t master what you can’t measure” applies when building an effective performance tracking system. Establishing a comprehensive KPI framework is crucial for the effective management and growth of chambers of commerce. By aligning KPIs with strategic objectives, using robust data collection methodologies, maintaining regular reporting, leveraging data-driven insights, and benchmarking performance, chambers can deliver greater value to their members and make a positive difference in your community.
