#77 - How to Develop Better Metrics (Legacy Episode)

Not All Metrics Are Created Equal: TTIs & KPIs Two main categories of metrics exist to help measure progress toward strategic goals and gauge the health of the company: targets to improve (TTIs) and key performance indicators (KPIs). TTIs are your top set of metrics, which have to directly impact your strategic priorities. Your strategic priorities need to align with your tenets and core values. If these metrics improve, you have moved closer to or met your strategic priorities. These are not monthly or quarterly (though you measure them monthly and quarterly and probably more often than that) but likely annual priorities and TTIs. KPIs are snapshots of the health of the company. If they improve, they should help your TTIs and strategic priorities (for the most part). Often times, these are metrics that lower-level employees may care about. The CEO does not need to get into the weeds of Instagram post performance, for example, but the social media manager does. Some metrics will likely not move, but if they do move you need to identify why they moved (either to understand the success or address the underperformance). For Barbell Logic this might be churn. A good example in another industry is engine temperature in an airplane. This should remain constant, but if it starts to go up you need to address it quickly. Not All Metrics Are Created Equal: Hierarchy of Metrics What you measure focuses your attention, so pick your metrics carefully. The CEO should not be looking at 100s of metrics. Improvements in your TTIs must actually move you closer toward your strategic priorities. For example, if a strategic priority for you is to earn $50k in coaching revenue this year, revenue is a TTI. KPIs that align with this may be churn, clients, cold calls, and life time value of clients. Make sure your metrics align with your priorities and your priorities align with your values and tenets. Prioritize metrics: do not measure metrics just because you can. Not all metrics are created equal. PS - Coach Smarter, Earn More: https://bit.ly/3X4ixOX Matt's Links Website: https://ryanmattreynolds.com/ Instagram: https://www.instagram.com/reynoldsstrong/?hl=en Chris's Links: LinkedIn: https://www.linkedin.com/in/chrismreynolds/