The Leadership Letter

Real correspondence from the people running real companies — and what it reveals about leadership.

Your KPI Drives Behavior — Choose It Like a Strategy

The metric you pick isn't just how you measure success — it's the strategy itself.

I think we need to be very careful about setting revenue goals for EB, as this will directly drive the behaviour of the sales teams. Just give me a revenue target on EB and no other goal or rule, and I will 1. Work with, say, Rubicon to help them activate new publishers, and then 2. Go to buyers in the market and explicitly recommend that they buy that inventory through Rubicon rather than AdX. On the buy-side, the easiest way to grow EB is at the expense of AdX, and that's what I will be after.

Roberto Ruju later elaborated: revenue should not be the main KPI. Success of EB should be defined by metrics that include: Number of active publishers, Number of relevant exchanges participating, and Ratio of EB:HB impressions on DFP. A revenue forecast can then be the calculated outcome of these strategic metrics, rather than the principal driver.

Chris LaSala added: I'm ok with the $100m..but what goal can we have that sits alongside it and tracks our progress against the reason we are building this — namely to move pubs away from HB and into EB — can we track the decline in HB with other exchanges?

Chip Hall concluded: Revenue is an important metric for us this coming year since it will really be our first full year of operations for EB, but it is not our most critical success metric.

This edition is for members — but the daily letter is free.

One real corporate email, and the lesson it teaches, in your inbox every weekday morning. Free. Unsubscribe in one click.

Want this edition and the full searchable archive?

Start your free week →What members get →
Court Exhibit
United States v. Google LLC (Ad Tech)
1:23-cv-00108 (VAED), Doc. 1192-16, filed 2024-08-22
January 4, 2017
Public domain
View the primary source →