How Misaligned Departmental KPIs Undermine Strategic Execution—and What to Do About It
Ever feel like you're spinning your wheels in your business, working harder but not seeing the growth you deserve? You're not alone. I've been there, and I've seen countless business owners stuck in the cycle of chasing revenue without truly building value.
Here's the thing: not all growth is created equal. Increasing revenue doesn't always mean you're increasing your company's worth. You can hit impressive revenue goals but still find yourself undervalued when it's time to sell or seek investment. Why? Because true value comes from focusing on the right metrics—those that actually drive long-term valuation.
I learned this the hard way, and it's why I'm so passionate about the valuation-first methodology. This approach shifts your focus from just revenue and profit to key metrics like revenue concentration, churn rate, pipeline strength, and employee engagement. These are the numbers that investors look at closely, and they're the ones that ensure your business is healthy, stable, and ready for growth.
Imagine your business as an engine. Revenue might be the fuel, but valuation-driving metrics are the gears and pistons that keep everything running smoothly. Without paying attention to these critical metrics, you risk building a business that's impressive on the surface but fragile underneath.
So, ask yourself: Are you tracking the right metrics? Are you truly building value, or just chasing numbers? Take a moment today to evaluate your business through the lens of valuation-first thinking. Trust me, your future self—and your future valuation—will thank you.