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What is MPF? Or Marketing Performance Framework

The Marketing Performance Framework (MPF) is at the core of the Retail business transformation process. MPF is a retailing and marketing approach to system-wide performance management in the Retail business that encompasses MI and processes for all levels of the business from the Site Manager to the Group Executive level. The key here is the process. The system, whether it be the Head Office SAP Retail or BW system or the site Retalix system or any other system by a retail company, is there to enable the process. ·         MPF is a coherent Performance Management (PM) framework, and focuses on sources of value.-          Directly links Inputs (Resources & Actions), Indicators (Value Drivers) & Outputs (Value);-          Has value drivers, as its core, built around the Retail business model. The short-term and long-term drivers are seamlessly connected;·         Brings an enhanced customer and top-line growth focus, in addition to the continued emphasis on efficiency and returns;·         MPF PM processes move away from a monthly focus and are based around the ‘week-on-week’ model, similar to that of best-in-class retailers, resulting in active, timely interventions;·         Imposes enhanced rigour and discipline via a formal schedule of performance events (meetings, conversations, etc). Performance meetings are action based, decision makers are in the room and meetings/conversations take place immediately after data is available;·         Data is sourced from standardised systems, report formats are standardised and analysis is of consistent and comparable metrics;·         Performance measurement is aligned throughout the organisation – everyone knows the big picture goals and their own team objectives are aligned to them.·         MPF builds connectivity through the organisation (top to bottom), linking MI from Investor to Site;·         MPF promotes clarity around roles and accountabilities and assigns responsibility for each aspect of performance;·         MPF provides linkages and trade-off’s to be made in setting financial targets, achieved initially via the holistic approach to primary business impact targets of Net Cash Contribution (NCC), Return on Invested Capital (ROIC), Return on Average Capital Employed (ROACE) and Net Cash.


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