Meltwater Webinar:PUTTING THE KEY BACK IN KPI METRICS

Adil EhsanFrieslandCampina Middle East

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About the Speaker

Adil EhsanFrieslandCampina Middle East

Cheese Marketing & Innovation Manager, Middle East

Putting the Key back in KPIAdil EhsanFrieslandcampina Middle EastJuly 2017

Background

• Key Performance Indicators are the signposts to success….or failure

• The modern-day problem however is often not ‘Not Measuring’ but ‘Knowing What To Measure’

• The objective of this webinar is to spark a discussion/thought process of a system to do this

Starting Point: Measurement flows from Strategy

OBJECTIVES• What do we want to Achieve?

STRATEGY

• Set of choices that outline what we will and WON’T do to get there

PLANS

• Details of the step/s that when added up take us to our Objective

We are only successful if at the end we achieve our Objectives

Understanding Lead & Lag

Plan Activity Results

Lead Indicators: Measure the effectiveness of the ActivityExample: Reach

Lag Indicators: Measure the effectiveness of the overall plan

Example: Awareness

Why Performance Measurement? The OODA Loop

Rules of OODA1. Stay focused on achieving your

objective2. Ongoing course correction – based on

data3. Fast OODA = Success4. Slow OODA = Failure5. Correct OODA beats Incorrect

OODA

Putting these concepts together

Objectives Strategy Plans Activities Lead/Activity Results Lag Results

LAG indicators help us understand if we have delivered results in line with Objectives

LEAD indicators help us understand if the plans & activities we are executing will help us deliver desired results

OODA loop critical to optimize/course correct Activities/plans for desired results

How this breaks into a Business flow

Objective

• Grow Market share

Strategy

• Focus on awareness among housewives

• Focus on Top trade only

Plans

• Digital advertising on Facebook primarily

• Distribution availability in 3 customers

Activities

• Ad campaign• Digital

advertising plan• Trade scheme• Instore displays

Lead Results

• Digital metrics – viewability, reach, frequency, engagement etc.

• Customers enrolled / outlets reached

• Displays planned & delivered

Lag Results

• Brand health metrics

• Distribution (W&N)

• Mkt share

OODA loop: Did we achieve the objective? Did we make the correct strategic choices?

OODA loop: Are the Activities working? Room for optimization?

Deciding what is Key? – The backwards flow

Objectives Strategy Plans Activities Lead/Activity Results Lag Results

What matters is meeting your objectives – hence Objectives and Strategy dictate what is Key or not.

Examples of Key Lead Indicators• Viewrate vs. Reach • # of customers enrolled vs. quality of customers

enrolled

Examples of Key Lag Indicators• Mkt share• Awareness vs. equity parameters• Weighted Distribution vs. Numeric

Avoiding the temptation of measuring everything

• An especially digital temptation

• Not everything is worth focusing on– Good to know– Need to know– Don’t care

• Key is a flow from Objectives and what creates an effective OODA– E.g. How important is CPV or CPC?

Hygiene Measure vs. Performance Measures

No rewards for doing this but if you don’t do it you FAIL!

Case in point : Ad viewability

How do we know if we have good KPI’s?

• Meeting our objectives

• The OODA loop is effective

• We can actually measure them

Q&A

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