In this video I want to answer the question, What is a Net Promoter Score, and how can we calculate it in Project Management?
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Definition of the Net Promoter Score
The Net Promoter Score is a metric to measure stakeholders’ responses to something. It is widely used in market research, to measure customer perceptions. But it has also been adapted to measure employee satisfaction and engagement. And Project Managers can adapt the idea to measure stakeholder perceptions.
The Net Promoter Score was developed in 2003 by Fred Reichheld –a partner at Bain & Company. Now, Bain owns the Net Promoter System, which is a rich and sophisticated toolset.
The Net Promoter System website has a lot of valuable information.
NPS in Project Management
The Project Management Institute introduced the Net Promoter Score into the 7th edition of the Guide to the Project Management Body of Knowledge within the Measurement Performance Domain.
The authors suggest it as a tool to measure stakeholder satisfaction. However, they do not discuss how you can calculate it.
Whilst the Net Promoter System has a distinct methodology, it is a protected intellectual property. So, rather than adopt the NPS in full, I would recommend Project Managers do one of the things we do best and borrow the principle and adapt it to our own needs.
So, what follows is not a formal description of how to calculate a Net Promoter Score, but a suggestion for calculating a score that can measure stakeholder satisfaction. I invite you, in turn, to adapt this to the needs of your projects.
The Basic Net Promoter Score Process
Step 1: Individual Satisfaction
Calculating Stakeholder satisfaction starts with asking each stakeholder to rate their own satisfaction. I suggest a scale from 0 to 10. And yes, include zero, if you want to be honest and allow them to score their satisfaction at nil!
You can also ask each stakeholder a number of questions, and score them on the same basis.
To aggregate the scores simply calculate the averages. You will get a number in the range zero to ten. This represents the state of the full stakeholder group for each question you asked. You can also do this for specific groups of stakeholders to discover who your supporters and opponents are.
Step 2: Supporter or Opponent?
The Second step of the NPS process is to label different parts of this range to represent supporters (or promoters), opponents (or detractors), and neutrals (or passives). The second terms are the ones the NPS system uses. It uses ranges of:
- 0-6 : Detractor/Opponent
These are people who don’t like what you have asked them about and are unhappy about your project.
- 7-8 : Passive/Neutral
These are broadly content, but not yet enthusiastic. They have no big issues, but nor are they celebrating… yet.
- 9-10 : Promoter/Supporter
These are enthusiastic and are likely to be prepared to be active proponents of your project.
Step 3: Overall Score
The third step in the Net Promoter System is to calculate a Net Promoter Score as the percentage of respondents who are Promoters minus the percentage who are Detractors. Then multiply by 100:
NPS = ( P(%) – D(%) ) x 100
This gives a score in the range of:
- 100% (if every stakeholder is an opponent) to
- 100% (if every stakeholder is a supporter)
That score is, perhaps, a better representation of the overall feeling than the simple average we calculated earlier.
Recommended Videos to Help with Stakeholder Perceptions
Carefully curated video recommendations for you:
- How to Do Stakeholder Engagement Management | Video
- What Goes into a Full Stakeholder Analysis? | Video
- My Top 6 Stakeholder Analysis Tools | Video
- Stakeholder Engagement Tips: 5 Tips For Project Managers | Video
- Engaging Stakeholders on Projects: Interview with Elizabeth Harrin | Video
Recommended Articles to Help with Stakeholder Perceptions
- Good Customer Service: How to Keep Your Client and Stakeholders Happy
- Win Stakeholder Compliance: Use the 5 Paths to Stakeholder Persuasion
- Stakeholder Engagement: How to Make it Work Effectively in Hybrid Work Environments
- The Top 20 Stakeholder Analysis Techniques All PMs Should Know
- Stakeholder Engagement Strategies: Don’t Miss 40-plus Ways to Power up Your Project
What Kit does a Project Manager Need?
I asked Project Managers in a couple of forums what material things you need to have, to do your job as a Project Manager. They responded magnificently. I compiled their answers into a Kit list. I added my own.
Note that the links are affiliated.
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