How to Align Department-Level KPIs Without Creating Siloed Thinking: A Systems Leadership Approach
Have you ever felt stuck trying to grow your business, despite hitting your revenue goals? It might sound strange, but focusing only on revenue can actually limit your success. Let me share a quick story about a client—let’s call him Bob—who learned this the hard way.
Bob ran a successful company, consistently hitting his financial goals year after year. But when he decided to sell, the valuation was shockingly low—$35 million less than expected! The culprit? Bob had unknowingly allowed his revenue concentration to become dangerously high with a single client. Even though he was doing well financially, his business carried hidden risks that significantly impacted its value.
Here’s the deal: revenue alone doesn't tell the whole story. Real value comes from managing the critical metrics that drive valuation—like concentration of revenue, churn rate, employee engagement, and profitability. By aligning your operations with these high-impact metrics, you not only improve your company’s market worth but also create a healthier, more resilient business.
This experience is why I'm passionate about the Valuation-First methodology. It transforms how you think about your business, guiding every decision through the lens of value creation. Instead of chasing revenue blindly, you focus on strategic metrics that matter most, ensuring long-term growth and stability.
So, ask yourself: Am I tracking the right metrics? Am I building real, sustainable value—or just chasing numbers? Don't let hidden risks erode your hard-earned success. Start aligning your business around valuation-driving metrics today and ensure your company thrives—not just survives. After all, real success isn't just about revenue; it's about creating lasting value and freedom of choice for your future