“From Numbers to Action” - NATM bestanden/Advito_KPI_presentation... · Travel agency...
Transcript of “From Numbers to Action” - NATM bestanden/Advito_KPI_presentation... · Travel agency...
“From Numbers to Action”
Delft, September 23rd 2010
Jeroen Hurkmans
Advito – NATM trainings sessions
The silent rise of strategic performance management
Airline Contracting - 7 October
Hotel Contracting - 4 November
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Broader Industry Trends
The silent rise of strategic performance management
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Strategic KPI’s support the travel management team internally as well as externallyy y
Education
Decisive Intervention
CommunicationCommunication
Career ProgressionCareer Progression
First Things First: Definitions Tactical vs. Strategicg
KPIs measure operational and management performance against a stated set of objectives
TacticalStrategicMeasure how well the Tactical
Any quantifiable measurements that can be tracked and
program performs in meeting core strategic corporate goals, such as be tracked and
evaluated revenue generation, cost containment or sustainabilty
First Things First: Definitions KPI vs. SLA
SLASLAFormal negotiated agreement between a client and a service providerDefines parameters for service deliveryp y
SpecificSLA measurements ARE:
SpecificOperational
Tactical
Strategic KPIs for theSLA measurements are NOT: for the
OVERALL travel program
First Things First: Definitions Dashboard vs. Scorecard
Dashboard ScorecardDashboard Scorecard
Purpose Displays performance Displays progress
Usage Performance monitoring Performance management
Updates Real-time feeds Monthly snapshotsUpdates Real time feeds Monthly snapshots
Data Events Summaries
Context Exceptions, alerts Targets, thresholds
Source Linked to systems Linked to plans
How sophisticatedly do you manage the effectiveness of your travel program?y p g
Do they review the progress against targets?
Is their data reliable and available?
Do their metrics track the “big picture”?
Is their data reliable and available?
Do they have the right level of consolidation?y g
Are performance variances reported?
And acted upon?
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Linking Travel Management with Corporate Goals
Growth
Cost Reduction
Governance / Compliance
Corporate Social Responsibilityorpo
rate
Le
vel
Savings / Cost Avoidance Negotiation / Sourcing
Cost Reduction Corporate Social ResponsibilityCnt Savings / Cost Avoidance Negotiation / Sourcing
SustainabilityDuty of Care / Security
nage
men
Traveler Satisfaction Policy Compliance
avel
Man
Demand Management Process EfficienciesTr
Mature programs track or plan to track a variety of different KPIs
Please indicate whether your travel program currently uses, or is planning to use, any of the following Key Performance Indicators.
Yes, currently used
Not used, but would like to implement
Not used and not planning to
implementAverage fare/rate development 85.0% (17) 5.0% (1) 10.0% (2)Cost avoidance 81 8% (18) 13 6% (3) 4 5% (1)Cost avoidance 81.8% (18) 13.6% (3) 4.5% (1)Total travel spend 95.5% (21) 4.5% (1) 0.0% (0)Online adoption in relation to offline/online fees 80.0% (16) 10.0% (2) 10.0% (2)Operational efficiencies/process costs 78.9% (15) 15.8% (3) 5.3% (1)TMC fees 85 0% (17) 10 0% (2) 5 0% (1)TMC fees 85.0% (17) 10.0% (2) 5.0% (1)Travel expenses in relation to incremental business revenue/turnover 30.0% (6) 30.0% (6) 40.0% (8)Spend under travel management control in relation to total travel category spend 57.9% (11) 26.3% (5) 15.8% (3)CO2 emissions caused by business travel 66.7% (14) 28.6% (6) 4.8% (1)Miles or hours travelled per year as a proportion of corporate revenues 21 1% (4) 15 8% (3) 63 2% (12)Miles or hours travelled per year as a proportion of corporate revenues 21.1% (4) 15.8% (3) 63.2% (12)Volume on corporate travel card versus total travel spend 66.7% (14) 9.5% (2) 23.8% (5)Cost of travel deparment in relation to travel spend 26.3% (5) 15.8% (3) 57.9% (11)Travel agency performance level 86.4% (19) 9.1% (2) 4.5% (1)Policy compliance 85 7% (18) 9 5% (2) 4 8% (1)Policy compliance 85.7% (18) 9.5% (2) 4.8% (1)Usage of virtual meetings 42.1% (8) 42.1% (8) 15.8% (3)Economy class ratio 76.2% (16) 4.8% (1) 19.0% (4)Advance booking ratio 81.0% (17) 19.0% (4) 0.0% (0)Customer (traveler) satisfaction 77 3% (17) 13 6% (3) 9 1% (2)Customer (traveler) satisfaction 77.3% (17) 13.6% (3) 9.1% (2)(Source: ACTE survey on behalf of Advito, April 2010)
Mature programs track or plan to track a variety of different KPIs
Total travel spend 95 5% 4 5% 0 0%
Currently usedTotal travel spend 95.5% 4.5% 0.0%Policy compliance 85.7% 9.5% 4.8%Average fare/rate development 85.0% 5.0% 10.0%TMC fees 85.0% 10.0% 5.0%Cost avoidance 81 8% 13 6% 4 5%Cost avoidance 81.8% 13.6% 4.5%Online adoption in relation to offline/online fees 80.0% 10.0% 10.0%
Would like to implementUsage of virtual meetings 42.1% 42.1% 15.8%
Not planning to implementMiles or hours travelled per year as a proportion of corporate revenues 21.1% 15.8% 63.2%
Cost of travel department in relation to travel spend 26.3% 15.8% 57.9%
Not planning to implement
Travel expenses in relation to incremental business revenue/turnover 30.0% 30.0% 40.0%
(Source: ACTE survey on behalf of Advito, April 2010)
Sample Strategic Travel Program KPIs
KPI Relevance DefinitionKPI Relevance DefinitionVirtual meeting index What is the share of meetings using
virtual meeting technology (i.e., videoconferencing) in comparison to all internal meetings?
Value of managed travel How much have we saved by sourcing and steering effectively?
Travel expense productivity How does the change in our travel d h h ispend compare to the change in
business revenue over time?
Travel intensity How much are our employees traveling to conduct business?
Change in total travel cost How much is travel management contributing to a bottom-line impact in operating expenses?
T l f H ll d th t lTravel agency performance index
How well does the travel agency perform in terms of cost, service delivery and strategic support?
How many strategic KPI should be selected?
Today I only concentrate onspeed indication
Wouldn’t fuel indication and altimeter also be useful ??p altimeter also be useful ??
1324 September, 2010 © 2008, Advito
Savings-related KPIs can be grouped and mapped according to their hierarchy
Savings / Cost
g y
Avoidance
Net Cost ofChange in Total Travel Cost
Net Cost of Service Ratio
Value of Managed Travel
Savings Against Market Index
Change in Average Cost per Trip
Travel Intensity
Economy Class Ratio
Advance Booking Ratio
Online Adoption Rate
C ash Discounts
Policy Compliance
Travel Management Services Coverage
Virtual Meeting Index
Change in Negotiated
Price
SourcingDemand
ManagementBehavior ManagementProcess Efficiency
Strategic KPI as featured in this whitepaperOther /Tactical KPI
Data Sources
S li AgenciesSuppliers
Total Cost of Travel
CreditCredit CardInternal
Systems
Understand and manage your data sources
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Easy? No, but it does not have to be difficult either
1. Take it seriously
2. Map out your corporate goals
3 Map your travel goals to your corporate goals3. Map your travel goals to your corporate goals
4. Define the appropriate KPIs4. Define the appropriate KPIs
5. Identify master data sources
6. Act on the data
Q&A
Jeroen HurkmansSr. Director Western Europe
E [email protected] Europalaan 400T +31 (0)20 56 21 822 P.O. Box 5035M +31 (0)6 23 52 99 24 3502 JA Ut htM +31 (0)6 23 52 99 24 3502 JA UtrechtF +31 (0)20 71 88 168 The Netherlands
www.advito.com
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