Underwriting Performance Indicators

Presented by: Jim TaszarekKirk 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 aroundthese 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 ProcessStaff 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 TaszarekKirk Nelson

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