How Operational Understanding Builds Trust Between Executive Teams and Frontline Managers
Ever feel like you're chasing a thousand different goals at once, but still not moving forward? It's easy to mistake activity for progress. I've been there, juggling tasks that felt urgent but weren't truly important. What changed everything for me was embracing a valuation-first approach.
Here's the thing: not all metrics are created equal. Some are vanity metrics—they look good on paper, but they don't drive real, sustainable value. Instead, I've learned to focus on a select few valuation-driving metrics. Concentration of revenue, churn rate, EBITDA, pipeline, employee engagement, and employee churn—these are the metrics that truly matter. They help you build a business that's not just successful today but valuable tomorrow.
Let me share a quick story: a client I worked with hit all their revenue targets and still ended up losing millions in valuation. Why? They overlooked the concentration of revenue—too much reliance on one big client. It cost them dearly. That’s why I’m passionate about aligning everything from your daily operations to your long-term strategy around these essential valuation-focused metrics.
It’s not just about numbers. Adopting this approach gives you clarity. It simplifies decision-making because you know exactly what metrics to track and why they matter. It helps your entire team align around a common vision, creating a culture of accountability and purpose.
If you're feeling stuck or overwhelmed, maybe it's time to shift your focus. Pick the right metrics, align your team, and watch your business transform. It worked for me, and it can work for you, too. Let's build value—not just activity.