Week 1
Business Metrics
Revenue (Outward Facing)
Everything that relates directly or indirectly to selling is a revenue metric. Usually led by the VP of Sales and VP of Marketing.
- Sales
- Marketing
Profitability (Efficiency)
Profitability metrics have to do with the efficiency of the processess by which the company creates and delivers its products and services to customers. Usually led by the Chief Operating Officer.
- Efficiency
- Logistics
- Production
- Operations
Risk Metrics
Risk metrics have to do with tracking and where possible reducing the many potential dangers a company faces. Net cash out is the most important metric to track. Risk metrics are usually related to leverage.
- Risk Management
We’re focusing specifically on dynamic metrics, ones that can be impacted with deliberate effort. I.e. Rental contract for a one store operation. It doesn’t change much on a day to day basis. However, if you have 1000’s of locations, then rental contract cost per square foot might be an important metric to track.