Hi

"Let us grow your agency."

What's the first thing that happens after this statement is spoken? Out come the spreadsheets. Let's measure and improve.

Spreadsheets are not bad. The issue is with what gets measured.

You cannot measure some things

Ever heard of the Starbucks revival story?

The CEO, Howard Schultz, returned to the company to bring it back from the brink of failure. He realised something profound - that the new "efficient" setup did not help create a connection between the customer and the brand.

What was missing was the smell of coffee - something that is not a metric.

This story should teaches that not everything can be measured with spreadsheets and data analysis. Sometimes, it's the intangible, the unquantifiable, that makes all the difference.

In the business world, we often hear the phrase, "Only what is measured improves." While metrics and data are undoubtedly important, it's crucial to remember that it's not just what is measured that improves; it's what is incentivised.

Incentives improve metrics. Sometimes the wrong metrics.

The Cobra Effect.

During British rule in India, the government was concerned about the rising number of venomous cobras in Delhi. To solve this problem, they introduced a bounty for every dead cobra brought to them.

Initially, this seemed like a brilliant idea. However, the unintended consequence was that people began breeding cobras to claim the reward. When the government realised this, they cancelled the bounty program. What happened next was surprising - the cobra breeders released their snakes, leading to an even greater cobra problem.

The Cobra Effect demonstrates that when you incentivise the wrong thing, you get unintended and often negative results. This is why we need to be cautious about relying solely on spreadsheets to drive our businesses.

Spreadsheets are useful tools for measuring and tracking various aspects of our agencies. They help us make data-driven decisions and optimise our processes. However, they have their limitations. They can't measure the emotional connection your clients have with your brand, the dedication and enthusiasm of your team, or the unique qualities that set you apart from competitors.

In an age where data is the new oil, it's easy to forget the importance of the intangible aspects of business. While it's tempting to focus solely on metrics, we must also consider what truly matters - the customer experience, the human touch, and the unquantifiable elements that create loyalty and trust.

Data + Intangibles

We need data, and we need to focus on the intangibles. Here are some ways to do that.

1. Customer-Centric Approach: Remember that your customers are not just numbers on a spreadsheet. Listen to their feedback, engage with them, and create experiences that resonate with their needs and desires.
2. Employee Motivation: Recognise and incentivise the behaviours that lead to long-term success. Acknowledge and reward dedication, innovation, and going above and beyond.
3. Brand Identity: Cultivate your brand's unique identity and values. It's the intangibles like brand loyalty and emotional connection that set you apart from the competition.
4. Strategic Measurement: Use spreadsheets as a tool, not the sole driver. Measure what matters most and align your metrics with your business objectives.

Remember, it's not just what is measured that improves; it's what is incentivised.

Let's align incentives with our long-term goals, customer satisfaction, and the preservation of our brand's unique essence.

Best

Anoop Kurup

(Read old newsletters)