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 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 you
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 is the most meaningful form of a long term performance compensation. In publicly traded companies the equity compensation plays a significant role for senior executive managers. Subject to market capitalization, the individual equity component can be anywhere from 10x to a few hundred times the fixed salary. It usually comes in form of a
Software engineering OKR evolve around maintaining software infrastructure, improving security, as well as quality and speed of deployment. Objective: Improve reliability of our infrastructure Key result: reduce failures / downtime by 70%Key result: 90% of services are finished on time Objective: Deploy reliable solutions Key result: Decrease bug rate by -30%Key result: Introduce automated UAT
At high performing organizations the guiding compensation principle is the growth & profit responsibility. I have seen a very few companies where the company’s performance played a leading role in compensation. While your senior team has the highest impact, it could not be done without the support of your junior staff. Higher risk accountability =>
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.
OKRs for Sales teams refer to revenue generation and retention, sales cycle, cross functional cooperation (with Marketing, Product, etc). Here are some examples: 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