MASB, Marketing Accountability Foundation

MASB Kicks Off

Having raised and recruited initial resources required to incorporate, staff, and proceed with a dozen standards projects, The Boardroom Project launched the Marketing Accountability Standards Board (MASB) of the Marketing Accountability Foundation (MAF).

Establishing the MASB was recommended by The Boardroom Project body after a three-year study of current practices, needs, and marketing accountability initiatives underway across the marketing industry. The study concluded that while marketing was not ignoring issues surrounding metrics and accountability, practices and initiatives underway were narrow in focus, lacking integration and generally not tied to financial performance in predictable ways.

“Measurement standards are essential for the efficient and effective functioning of a marketing driven business because decisions about the allocation of resources rely heavily on credible, valid, transparent and understandable information”, said Dr. David Stewart, Chairman. “The marketing discipline stands at a crossroad where it can take a leadership role in the development of standard metrics and processes or be reduced to the role of tactical implementation of the strategies designed by others”, he added.

“This is a seminal opportunity to approach the metrics foundation of accountability & improvement at the highest level: across industries, disciplines & domains; with common language, purpose & financial denominators; and with collaboration & coordinated efforts over all & over time”, said Kate Sirkin, founding Director.

“Marketing will move from discretionary business expense to board-level strategic investment, only through an independent standards setting “authority” for measuring (forecasting & improving) the financial return from marketing activities” added Director MJ Tisor.

“As it was for product quality in manufacturing (with ISO) and financial accounting and reporting (with FASB), marketers taking the lead in this will gain sustained competitive advantage”, added Director Dr. Joseph Plummer.

Questions and Answers

What is Vision & Role of the Foundation?

The vision of the Marketing Accountability Foundation (MAF) is “an independent standards body, with universal and voluntary collaboration and participation, laying the measurement foundations for marketing professionals to realize full accountability and strategic status in the Boardroom, as reliable forecasters and achievers of consistent growth in customer revenues, earnings and cash flows quarter-to-quarter and year-to-year”.

MAF is the independent, private sector, self-governing marketing organization incorporated exclusively for charitable, educational, scientific, and literary purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code. It will provide oversight, administration and funding for its standards-setting Board (MASB) and Advisory Council (MASAC).

What is Mission & Role of the Board (MASB)?

The mission of the MASB is “to establish (improve, issue and promote) marketing measurement and accountability standards, across industry and domain, for continuous improvement in financial performance and for the guidance and education of business decision makers”.

MASB is the operating organization delegated authority by the Foundation to establish standards for marketing metrics and accountability. Board Members guide the standards projects and resolve technical and other issues from project start through adoption. As the organization develops, MASB will be advised by the Marketing Accountability Advisory Council (MASAC) and assisted in project work by an Emerging Issues Task Force, Project Committees, Fellows, and staff.

What are the Initial Standards Projects?
First Projects up and underway:
   Standards Review (see Bottom Line-Stewart-April 08)
   Marketing Metric Audit Protocol (MMAP)
   Fundamentals (see about MASB)
   CFO Outreach
   Measuring (predicting & improving) TV Impact (posted)
   Measuring (predicting & improving) Long-Term Effects
   Measuring (predicting & improving) On-Line Advertising
   Activities & Metrics Catalogue (w/Ties to Financials)

Others on the Agenda:

   Measuring (predicting) Impact of Competitive Moves
   The Value of MASB as seen by Wall Street
   Improvement Pyramid
   Common Language

How Were the Projects Selected & Prioritized?

The initial projects have been selected based on input from MASB Charter Members and feedback from CFO interviews. They have been prioritized according to current MASB resources.

What are the Stages of a Standards Project?

I. Frame-Up (Emerging Issue Abstract)

II. Research

A. What is Known/not/needed

B. New Learning

C. Preliminary Summary & Conclusions

III. Review

A. Debates by MASB (revisions/approval)

B. Debates by MASAC (revisions/approval)

C. Industry Challenge (revisions)

IV. Adoption

What's the Basis For Approval/Adoption?

Members of the MASB Board operate according to the following precepts of conduct:
   · Be open and objective in decision making
   · Weigh the needs & views of constituency
   · Ensure transparency through open due process
   · Bring about change w/minimal disruption
   · Promulgate standards when:
   ○ Logical flow of the argument is tight
   ○ Empirical support material is convincing
   ○ Conclusions are managerially meaningful
   ○ Scientific evidence pro & con is acknowledged
   ○ Benefits exceed costs

What is Marketing Metric Audit Protocol?

While marketing does not lack measures, it lacks standard metrics explicitly linked to financial performance in predictable ways. The Marketing Metric Audit Protocol (MMAP) is a formal process for connecting marketing activities to the financial performance of the firm. The process includes the conceptual linking of marketing activities to intermediate marketing outcome metrics to cash flow drivers of the business, as well as the validation and causality characteristics of an ideal intermediate marketing outcome metric.

Why Cash Flow?

Cash flow both short-term and over time is the ultimate metric to which every business activity, including marketing, should be causally linked in order to make informed decisions about the allocation of resources across the enterprise; and the process of validating all intermediate marketing outcome metrics against short-term and/or long-term cash flow drivers is the only way to facilitate financial forecasting and improvement.

What are the Characteristics of an Ideal Metric?
· Relevant: addresses specific pending action

Predictive: accurately predicts outcome of action
Objective: not subject to personal interpretation
Calibrated: same meaning across conditions
Reliable: dependable and stable over time
Sensitive: identifies meaningful differences
Simple: uncomplicated meaning, implications clear
Causal: course of action leads to improvement
Transparent: subject to independent audit
Quality Assured: formal processes to assure 1-9

Who are the Charter Members?

Visa USA

Starcom MediaVest Group

Nielsen

Nielsen TMG

Advertising Research Foundation (ARF)

Marketing Science Institute (MSI)

Direct Marketing Association (DMA)

University of California Riverside

University of California Los Angeles

Columbia University
Market Share Partners

The MMAP Center

Who Should I Contact to get Involved?

David Stewart (MASB Chairman): david.stewart@ucr.edu

Meg Blair (Interim President): megblair@themasb.org

Joe Plummer (MASB Director): joeplumm@gmail.com

Kate Sirkin (MASB Director): kate.sirkin@smvgroup.com

Mike Duffy (MASB Director): michael.duffy@nielsen.com

MJ Tisor (MASB Director): mtisor@marketsharepartners.com