Focus – Do you know the one stat that moves your business?
What one key metric drives your business? Every business has one. A few of mine have been; listings, enrollments, downloads, subscribers. Notice I did not say; sales, revenue, profits, EBITDA. Yes I track these too but the underlying metrics move the business forward.
Identify these key metrics and focus on them – set a goal for them make them come alive in the minds of your team. Make sure that the key driver creates the value for your clients and your business.
One of my mentors tells me that his key metric is subscribers. No care for revenue as he is building a “Tribe” (if you do not know what I am talking about run out and buy Seth Godin’s book Tribe). You see he has identified what creates enterprise value for his shareholders (I think he is the only shareholder).
Once you have identified the key value driver focus on it relentlessly no matter what it is. Yes you have to watch your cash and your sales and etc etc. Many people only watch those things and then end up focusing on the wrong value drivers or too many “Key Metrics” and end up creating nothing remarkable. Google originally wanted to be the best search engine period. Amazon in the begining wanted to focus on expanding the books it had the ability to sell you. Jack Daniels focused on distilling whiskey.
Find your value driver and focus on it!
Tags: Focus, goals, management