KPI: Kopy & Paste Immediately

Hey, happy Monday!

This note, like all the ones you receive, are my notes from the real world.

When something works I am happy to make it public. That means you can come back to these newsletters whenever you want and implement what you need. So many people do that. They thank me afterward.

A big part of my job is to simplify things so that everyone can do them in the best way possible. Even the most complex ones.

There is a bad habit of doing Management by Expectation, that is, the people we work with are expected to read our minds. The problem is not the people, it is not malice or incompetence, the fact is that it is really hard to define the parameters of success. There is only time to do and never time to learn. Especially if the activities are always new and hyper specialized.

When something is not working, it is very likely that somewhere someone will call a meeting to point the finger at someone else. Surely that doesn’t solve the problem.

What would happen instead if the work were technically designed not to fail?

What if we stopped controlling people and devoted ourselves to designing the system?

The first thing that can happen is to realize you don’t have a system.

Where do your customers come from? (Personal Network excluded)

How much are you spending to acquire them? Who is contacting them?

What do your customers do with your products? Are they satisfied or do they simply pay (for a little longer)?

At what point are they stuck?

I learned that if you really want to make people free and proud to work with you, you have to make sure they achieve success.

It doesn’t mean you have to work for them, it means you have to design the car you are inviting them to ride in. For a ride.

Your job is to make sure that the destination is not only clear and inspiring but most importantly that the journey is exciting and safe.

And how do you do that?

You can avoid driving blindfolded in the meantime.

The first step is in this note.

From Managing by Expectation to Managing by Real Time Numbers.

Should you be leading the entire company or a specific team, I have gathered the most important numbers you need to keep track of, by individual team.

• C-Level
• Finance
• Marketing
• Sales
• Fulfillment
• Operations

You will find them all at the bottom, but first…

KPI: Kopy & Paste Immediately

This note is not meant to teach you what KPIs are, who invented them, and what agile philosophy is behind them. No no no…

This note contains a precise command. Copy and Paste these inputs within the best strategy tool ever invented: the spreadsheet. And do it now! 🙂

1. Do it in the simplest form possible. Think about cell colors and fonts later.
2. On the rows write what to measure, on the columns the days.
3. Start each meeting from this sheet. You must build a habit not inflict an obligation.
4. Include the link to the spreadsheet automatically in the description of each meeting
5. Make sure they are accurate. Having wrong numbers is worse than not having them; you can automate the collection if you want.

“I have the numbers. I just have to ask them to…”

This is likely to be true, but numbers are not needed tomorrow, a week from now, or next quarter. Numbers are always needed. Even just writing them in the right cell gives you situational awareness. It is your ritual. You can share it, not skip it.

“Yes but we would like to use/already use OKRs…”

Great. No problem. KPIs are the only element compatible with all existing management techniques. Not just OKRs.

KPIs are a fundamental part of OKRs. They are not a substitute. In fact, it is important that you track performance through KPIs, which are atomic, independent measurements of the effect of your work. In the execution of your strategy only certain KPIs will become Key Results, Key Result in fact, which you will use to measure progress toward achieving your goal.

It is also increasingly common for organizations that want to gain strategic agility and use other “non-OKRs” management techniques to decide to adopt only the good of the methodology such as critical thinking skills or even the pace and quality of meetings. There is no need to become fundamentalists.

For example, you might want to take a look at the note in which I talk about Micro OKRs. Those who read it called it a “lifesaver”!!!

The complete list of KPIs, team by team.

Okay, here we go. Here are all the “measurables.”

The level of measurement can be daily, weekly or monthly…

Some teams can, indeed should, use the same KPIs to support each other, for example Marketing and Sales.

C-Level

1. Growth in Turnover
2. Profit
3. Turnover
4. Margin
5. CLV – Customer Lifetime Value

Finance

1. Money in the account
2. Profit
3. Turnover
4. Profit margin
5. Recurring Revenue

Marketing

1. Sales Opportunities by Channel
2. Total Marketing Expenses
3. Marketing Costs per Client
4. Cost of Acquisition
5. Conversion Rate between Sales Opportunity and Contract Signed by Channel.
6. Number of Inbound Referrals
7. ADV expenses
8. ROI on ADV expenditures
9. Email / Contact
   1. Active
   2. Opening Rate
   3. Click Rate
   4. Disenrollment Rate

Sales

1. Turnover
2. Conversion Rate between Sales Opportunity and Contract Signed by Channel.
3. CLV – Customer Lifetime Value
4. New customers
5. Value of sales
6. Conversations/Meetings/Telephones of the Commercials.
7. Conversion rate for Commercial
8. Time in days from Acquisition to Contract signing.
9. Turnover by product
10. Value of pipeline opportunities (CRM)
11. Average order value (AOV)
12. NPS
13. Refunds
14. Number of Referrals in Contact

Fulfillment

1. CLV – Customer Lifetime Value
2. Churn Rate
3. NPS
4. Support Ticket Number
5. Refunds

Operations

1. Margin
2. Turnover / Employees
3. Margin / Employees
4. Pipeline candidates in the Hiring by Team process.
5. Hiring Rate by Team
6. Support Ticket Number

You have everything.

Good work!
Get in touch and tell me how it’s going., I care.

👋