ABOUT THIS EPISODE
Dave "CAC" Kellogg and Ray "Growth" Rike continue their discussion on the SaaS Metrics Maturity Model which includes the below five levels:
- Level 1: Foundation
- Level 2: Trust
- Level 3: Strategic Linkage
- Level 4: Metrics Culture
- Level 5: Trajectory
Level 1: Lay the foundation
- Definitions and calculations
- Pipeline stages, forecast categories, close dates, values, SaaS metrics
- Semantics - what do words like best case, forecast, commit and downside mean
- Instrument underlying systems (GL, CRM, Billing, HCM, etc)
- Consider Metrics Committee
Level 2: Build trust
- Templates, templates, templates
- Metrics selection & presentation
- History & context - always include footnotes on how metrics are calculated
- Regular Cadence: which templates used at which meetings?
- Continuous improvement - fix data at the source, improve templates
Level 3: Link Metrics to Business Strategy
- Identify your top challenges
- Define 4-6 strategic goals - align metrics to those goals
- Link department, team and individual objectives to the company metrics (OKRs)
Level 4: Build a metrics culture
- Demand numeracy
- Manage to the regular metrics publishing cadence
- Metrics conversations about the business impact NOT the metric calculation method
Level 5: Agree on strategic trajectory
- Long-range, driver-based models
- Timeframe: When are metrics goals targeted to be achieved, what are the milestones towards goal
- Sequencing: Not everything at once - what is the priority order and associated timeframe for each metric's goal
If you are a creator, user or participant in how your company uses metrics to measure performance, inform decision making and/or report performance to your boss, your board and your investors this conversation will be valuable!!!
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