The Unseen Drag: How Misaligned Mid-Level KPIs Undermine Executive Strategy
Ever feel like your business is growing but you're not seeing the real value you'd hoped for? I've been there, too. I once met a business owner—let's call him Bob—who built an impressive company, hit every revenue goal, and yet, when it came time to sell, discovered his business was worth $35 million less than expected. Ouch. The reason? He focused solely on revenue growth, overlooking critical valuation-driving metrics like revenue concentration.
Here's the thing: not all growth is created equal. Growing your business in the wrong way can actually lower its value. Bob's story taught me the importance of a "Valuation-First" approach—focusing your entire operation around metrics that truly drive value. Metrics like revenue concentration, customer churn rate, profitability, and employee engagement aren't just numbers; they're your roadmap to a business that's not only profitable but also highly valuable.
That's why I advocate for a Strategic Architect approach. A Strategic Architect helps you align your company around these key metrics, ensuring every decision you make boosts your valuation. Imagine having someone who doesn't just help you grow revenue but guides you to grow it the right way—reducing risk and increasing value every step of the journey.
Bob spent three extra years fixing issues that could have been avoided with a valuation-first mindset. Don't let that be you. Start aligning your operations now around metrics that matter, and you'll build a business that's not just successful, but valuable. And when the time comes to sell—or simply enjoy the freedom you've built—you'll know you've done it right. Trust me, your future self will thank you.