Business Growth Strategies… Why Metrics Matter

There is an old saying “You can’t manage what you don’t measure”

As venture capital advisors who invest in expansion stage software companies we spend a tremendous amount of time working with the founders, CEO’s and their management teams on business growth strategies for the portfolio companies. One of the foundational strategies we employ with all companies is the need for them to manage their business using the right metrics or key performance indicators (KPI’s).

I was reading one of the blogs I check out on a regular basis at CSO Insights written by Barry Trailer which I thought would provide a few data points on why metrics matter for those of you interested.

Barry is using metrics as an example of how they can improve Sales Performance Optimization. Below is the data that came back from their work with companies around how having accurate and timely metrics can make a difference for the sales management…

 

Now see how that can be leveraged to make a difference in the sales team’s ability to perform…

 

Metrics can improve all the operational aspects of your business from Finance to Product Management to Development to Customer Care and yes Sales and Marketing. In fact OpenView Labs helps portfolio companies identify, measure and manage metrics in all of these areas.

So if you don’t already have it, you might want to get religion… the metrics religion!

All the best!

G