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Performance

What does progress look like? Focus on metrics that matter to elevate standards that deterministically elevate and strengthen platform to explore greater potential for fulfillment.

What will it take to move the needle? Are you on the critical path to success?

Domains​

Question

How do you optimise the Coefficient of Flow for creating and distributing value.

Principles​

Compare outcomes with expectations to make data aligned decisions. Regularly audit systems to validate Performance Indicators to ensure they genuinely reflect your core objectives, rather than managing to outdated proxies for value.

  • The map is not the territory
  • The model is not the reality
  • The data is not the decision.

The Ps vs Cs Matrix

VVFL BuildsHow
ConfidenceReal evidence replaces hope
CredibilityTracked results prove capability
ConsensusShared metrics align the team
CapitalProven performance attracts resources

Without consistent standards and analysis protocols making progress is guesswork.

Purpose​

Balance the scoreboard by measuring what matters. Compare against Standard Benchmarks to drive performance improvement.

  1. Benchmarks clarify expected outcomes
  2. Benchmarks clarify where and how to add value
  3. Benchmarks promote a race to the top
  4. Benchmarks help track progress
  5. Benchmarks promote dialogue and are a proven engagement tool

Value System​

Value System

Know exactly what you value, why you value it, and how you value it.

  1. Are we compromising our value system?
  2. Are we investing our time wisely?
  3. Are we leveraging tools to maximum potential?
  4. Are we helping people take better decisions?
  5. Are we missing anything?

For information to be valuable, it has to satisfy the following criteria:

  1. it has to be important
  2. it has to be accurate
  3. it has to be actionable

Process​

Connect signals and triggers with levers to navigate the ship better.

KPI review process:

  1. Define core objectives clearly
  2. Choose metrics that directly reflect these objectives
  3. Understand why each metric was originally selected
  4. Regularly question if metrics still accurately represent core goals
  5. Be willing to discard or update metrics that have lost relevance
  6. Avoid managing to metrics without understanding their purpose
  7. Stay vigilant against metric inertia as the business evolves
  8. Focus on the underlying truth (e.g., customer happiness) rather than the proxy
  9. Ensure metrics drive actions that genuinely improve core objectives
  10. Maintain skepticism towards long-standing metrics

Applications​

Benchmarks

  1. Time and Energy
  2. Primary
  3. Retail
  4. Financial
  5. Human Resources

Industries​

Presentation​

Build dashboards that tell stories and trigger accurate decisions that exploit opportunities and remedy failures.

  • Worst first
  • Set decision triggers
  • Link triggers to processes
  • Link processes to people

North Star​

Your North Star focuses intention and attention.

Time and cost/effort to valuable UserActivation.

  • Cash Flow is King
  • Revenue (e.g. ARR, GMV)
  • Customer growth (e.g. paid users, marketshare)
  • Consumption growth (e.g. messages sent, nights booked)
  • Engagement growth (e.g. MAU, DAU)
  • Growth efficiency (e.g. LTV/CAC, margins)
  • User experience (e.g. NPS)

Failures​

Bad news needs to travel fast without impediment. Why did failure occur? What can be done to prevent it happening again? How can we react faster and better?

  • Better training?
  • Wrong tactics?
  • Wrong strategy?
  • Cancel the experiment?
  • Cancel contract?
  • Cancel role?

Success​

Review when judging the success of business strategy decisions.

  • How much more to reinvest?
  • Adjacent expansion?
  • Take on more complex/riskier bet?
  • Scale recruitment?