Growth: Non-solicited incoming applications Performance: Company headcount per / HR FTE Cost efficiency: Cost per hiree While there are many HR related KPIs to track, there are only few that are trully owned by the HR team: Non-solicited incoming applications The primary goal of the HR team is to build the employer brand, that facilitates…
Finance teams can have a significant impact on company’s results and performance. First, they can influence capital allocation based on market analysis, financial analysis, and business scenarios. See strategic finance. Second, the typical finance agenda allows for better cash flows and profitability across the company; Accounts payable Key activities: Processing invoices from suppliers. Opportunities: Negotiate…
Growth: Forecast accuracy Performance: Time to report Cost efficiency: cost / income ratio Finance function can follow hundreds of financial KPIs, however there are only few, which the finance team really owns: Forecast accuracy Compares projected financial results to actual financial outcomes. It is an indicator of reliability to project future performance Time to report…
Equity compensation is the most meaningful form of performance compensation. Early stage tech companies also use company equity to retain and attract talent (that they would not be able to pay fully in cash). Publicly traded companies use performance stocks to align and incentivise employees (mostly executive team) to create shareholder value. Publicly traded companiesThe…
Objective: Improve onboarding Key result: 40% new activations in 3 daysKey result: 80% new users use feature XKey result: aborted activations < 30% Objective: Improve reliability of our infrastructure Key result: reduce failures / downtime by 70%Key result: 90% of services are finished on time Objective: Speed up deployment of important bug fixes Key result:…
The ultimate compensation driver is profit & loss responsibility. Many people believe they have one, but unless their compensation is primarily based on profits, they do not have that responsibility. Your compensation plan must be simple and scalable. Simple means easy rules that can be quickly explained by any junior employee. Scalable means that core…
Cash flow levers are pathways to improve your cash balance in a few weeks time. You can mark your success merely by checking bank accounts or by measuring the cash flow margin ratio. The ratio compares monthly revenues to operating cash flow, i.e. how much cash can you generate out of 1 dollar (invoiced) revenue.…
Objective: Build a healthy and sustainable Sales pipeline Key result: Achieve a monthly pipeline of $1MKey result: Achieve 23% “Enterprise” dealsKey result: Increase total enriched leads to 75% Objective: Expand market share Key result: identify a new ICP to target in 3 monthsKey result: Boost engagement on our digital platforms by 25% each yearKey results:…
Start with what you do best. Describe your business in terms of added value. “Best”, “more value”, “fastest service” is meaningless. Be specific; “delivery in 24 hours, guaranteed”, “400.000 results in under 2 seconds”, “built with certfiied components only”. Then, start building your vision by expanding the added value across value chain horizontally or vertically,…
Growth: product map completion in % Performance: bug rate Cost efficiency: $ cost per service run / usage / infrastructure utilized capacity Software engineering is usually a highly creative role with very few routines that can be meaningfully measured on work efficiency or volume. What targets do not work: Instead focus on product or software…