In this article I will discuss different methods to evaluate an investment or a project that involves capital expenditure (CAPEX). At the end, I will compare all methods and discuss advantages and shortcomings of each. ROI The Return On Investment shows, how much profit you make on your initial investment. An example: Year 0 Year…
Strategic finance deals in capital allocation. In a for-profit business the ultimate goal is to increase shareholder value. The C-level needs to have an understanding how business decisions (will) impact shareholders. As a CFO, you need to understand the business model (= value creation) and translate it into financial scenarios. The ultimate outcome is a…
<< back to OKR Objective: Improve user engagement Key result: New features have X% utilizationKey result: feature D increases usage by Y% Objective: Improve onboarding Key result: 40% new activations in 3 daysKey result: 80% new users use feature XKey result: aborted activations < 30% Objective: Improve monetization of our existing customer base Key result:…
Growth: Monthly Active Users Performance: % Net Retention Revenue (NRR) Cost efficiency: increase in NRR per $1 Product team expense Product metrics answer questions how users interact with product. Underlying framework for Product is the PRODUCT FUNNEL.It represents users’ journey from product/service discovery to purchase. You can rely on ‘Pirate metrics’ (defined by Dave McClure),…
The core of success lies in a culture of performance. It’s the pivotal factor in whether you thrive in establishing an outstanding business or merely defer challenges. Moreover, it forms the foundation for all metrics, OKRs, performance evaluations, and promotions. This ethos cannot be replicated or imposed. Authenticity is paramount; you must embody it, immerse…
Pay grade is a compensation range that is assigned to a specific job and seniority. Pay grades are associated with a career ladder (see end of this article). Career ladder is a summary of all jobs by seniority defined by required competencies. Competency = know-how + skills + behaviour A career ladder also refers to…
OKR is a proven goal management framework that enables organizations; Key components are: OBJECTIVES 3-5 objectives per quarter to support your strategy KEY RESULTS Each objective is accompanied by 3-5 key results TASKS Specific actions that lead to results. EXAMPLE OKR CRITICAL CONSIDERATIONS While OKR should be ambitious and you should expect 80% attainment rate,…
Growth: Marketing Qualified Leads (MQL) per month Performance: conversion all channels visitors to MQL Cost efficiency: acquisition cost of MQL Underlying framework for marketing function is the MARKETING FUNNEL. It rdescribes customers’ journey from their 1st (website or social media) visit to expressing an interest in your service or product. Please note, that all in-funnel…
Growing just bigger makes you fat. Becoming better makes you unkillable. With performance metrics (or KPIs) you will monitor progress and performance of your organisation. You will identify bottlenecks in efficiency and celebrate success with high performing teams. Are you getting just bigger or better? Or both? A note on OKRs: While quarterly OKR help…
This performance playbook is based on my 15 years of experience in how low-performing companies fail their vision. Copy & paste will not work for you. It is about mindset, the toolkit itself won’t do the magic. While I can’t relay the mindset, I can share tools and ideas. It is not complete and will…