You become what you measure
There's an old adage that says, "you manage what you measure." Ultimately, what you manage towards defines the future of your company—you become what you measure (and don't become what you don't measure).
On the surface "measuring the right things" sounds simple, but In the ocean of available data digital leaders swim in today, it isn't so clear cut.
This week's review goes into actionable frameworks and implementation to make sure you're measuring metrics that drive you towards the promised land (revenue creation and profitability), as opposed to numbers that are interesting, but don't tie to the bottom line.
Entrepreneurs: Beware of Vanity Metrics
• Eric Ries, author of multiple books and StartupLessonsLearned.com adviser to many startups, companies, and venture capital firms
What is this about?
Eric Ries has seen metrics done well and done poorly more than most of us. He provides a framework to ensure that your definition of metrics that are "key to the business" are actually driving the business forward. This post is part of a larger series worth investigating.
Why does it matter?
Reports aren't ends in and of themselves. If you strive to create reports that people can both understand and trust will increase buy-in as far as data validity and foster better data-driven decision making across an organization.
How can you apply it?
We love this post because you can immediately use the framework to evaluate your dashboards, reports and spreadsheets you use to manage your business.
Time
This is a medium-length read at 10 minutes.
The 6 SaaS Metrics That Matter
• Margaret Kelsey, Director of Brand & Creative at Appcues
What is this about?
Understanding past and present performance is critical, but so are metrics that focus on future growth. This post is SaaS-focused, but the principles here are helpful for all types of businesses.
Why does it matter?
We naturally focus on single, key events like a transaction, an engagement or a download. The singular view, though, often obscures the bigger picture of business health and new growth opportunities.
How can you apply it?
Grab a calculator and start doing the back of the napkin math for your business as you read it. Ask yourself if you're currently measuring what you need to and whether you're surprised by find.
Time
This is a quick read at about 7 minutes.
Choosing Metrics That Matter
• Segment, Intro to Analytics Course
What is this about?
This is the first piece of a much larger course but it sets the foundations of how to avoid the trap of vanity metrics and finding the metrics that move your business forward.
Why does it matter?
It sets an actionable plan and, most importantly, an understanding of building organization wide reporting through startup to large organization.
How can you apply it?
This content provides a great framework for looking at the metrics that are shared across your organization and evaluating whether they follow best-practices. There are also very helpful starting points for metrics that don't follow best practices.
Time
This is a lengthy read at about 15 minutes, but it's great material.
