Underwriting Performance Indicators Presented by:Jim Taszarek Kirk Nelson
What We will Cover Break down net underwriting revenue per listener hour (NURPLH) Give you a tool for annual planning Key performance indicators to manage during the year
Hedgehog Concept What can we be best in the world at What you are deeply passionate about What drives your economic engine
How to Use NURPLH Compare to industry –Highest –Median Compare to self Note: highly rated stations
Breaking Down The Formula Listener hours Total revenue –Number of reps –Performance of individual reps –Inventory management Cost to generate revenue (expenses)
Planning Spreadsheet Calculate prior year NURPLH Compare to industry benchmarks –Median –High Run scenarios for upcoming year –Hold listener hours constant
What Drives Underwriting Ratings – not within our control People Inventory Create performance systems around these levers and monitor performance
Monitor What Drives Performance
People Systems Staff assessment Ongoing recruitment process Selection process - hire right people Set goals and monitor performance
Staff Assessment Process Staff Assessment (annually, quarterly) Right people to achieve next year’s goal Evaluate each person’s situation Have hard conversations about non- performers If you have high turnover find out why Talk through options if someone leaves Include “bench strength” Brutally honest so no surprises
People Annual growth benchmarks: –Year 1: Average of new hires –Year 2: 50 – 100% –Year 3: 20 – 30% –Year 4: 15 – 20% Monthly performance evaluation against: –Goal, LY
Historical Billing Annually –Billing not collections –Planning Tool –Growth trends/Projections –Seasonal factors Monthly –Compare pacing to historical growth trends
3-Month Billing Projections Monthly –Pacing benchmarks: –6 weeks prior to start of month: 70 – 75% –2 weeks prior to start of month: 85 – 89% –Start of month: 90 – 95% –2 weeks into month – 99 – 101%
?? Questions ?? Presented by:Jim Taszarek Kirk Nelson
Station A Station B
Station A Station B
Station A