Important Considerations for Business Metrics - You are What You Measure
David Waxman, Serial Entrepreneur and Startup Mentor at Amplify LA (http://www.amplify.la/), talks about business metrics. Understand why and how metrics should be integrated into your growth process.
- Success must be measured
- Uncover the "real" metrics of your business
- Don't get fooled by blended or flashy metrics
Sometimes, clichés are clichés because they actually are true and I believe this one to be true which is you are what you measure as a company. If you don’t measure what you think your milestones are and your key metrics are, you can’t be successful. You can’t know whether you got better or got worse if you don’t know what your baseline was.
So in order to have success, you need to measure it and the things that you choose to measure are going to define how you operate as a company.
One of the things that people and lean start up movement talk about and I really believe in is that you got to uncover what really driving your business and don’t let yourself get fooled by kind of fake blended flashy metrics because sometimes you can look into a great revenue figure and pick it apart and you will find actually that something is going maybe horribly wrong or not as well as it could and you need to be honest with yourself and honest with each other and go say that’s the metric that we need to focus on not this great blended number that looks all fancy and good but this number here that’s not going quite how we wanted to go.
So you are what you measure and you got to just be kind of ruthlessly honest with yourself and your team to know to go after the metrics that actually counted or actually driving your business.