How Operational Friction Masks Strategic Misalignment—and What to Do About It

Have you ever wondered why some companies thrive while others just survive? It’s not luck or chance—it’s all about aligning your metrics to drive real, lasting value. Many business owners fall into the trap of chasing revenue without realizing they’re actually decreasing overall valuation. I’ve seen this happen firsthand, and it’s why I’m passionate about the Valuation-First Methodology.

This method flips traditional thinking on its head. Instead of setting random goals and hoping they create value, we start by identifying specific, valuation-driving metrics. Focusing on these metrics—such as revenue concentration, churn rate, EBITDA, pipeline health, employee engagement, and employee churn—ensures every business decision boosts your company’s worth.

One of my clients learned this the hard way. After years of hitting impressive revenue targets, he found out his company was worth $35 million less than it should have been. The problem? Too much revenue concentration in one client. It took three extra years to fix this issue. Imagine what could have been accomplished if he’d known sooner.

By embracing a valuation-first approach, companies not only avoid costly pitfalls but also gain clarity and alignment throughout their teams. It’s not about working harder—it's about working smarter, strategically aligning every action beneath focused metrics that genuinely move the needle.

The good news is, it’s never too late to pivot. By shifting your focus now to these core valuation metrics, you can proactively build a business that’s not just successful by traditional measures but truly valuable in the marketplace.

Ready to start aligning your business metrics with your vision and securing your company’s future value? Let’s talk about how the Valuation-First Methodology can transform your company.