Being data-driven is so critical to successful #PrivateEquity-backed leadership. And narrowing down the metrics that drive EBITDA is a great place to start. Thanks Paul Stansik for sharing - this is a great way to break down asking questions that directly relate to performance (and an impactful way to report #KPIs to your board!)
A cheat-code for anyone working in a PE-backed business: As early as possible, pick a few metrics for your area of the company, create a clear/visual way to present them, and show your team and investors the same couple of pages w/ those metrics on them every time you meet. This isn't about proving that you know what you're doing or keeping people off your back. It's about doing your part to build a winning team. A team that keeps score, pays attention to the scoreboard, and cares about whether they're winning or losing. A team that's a little paranoid about what they might be missing. A team that wants to be known for doing the ordinary things better than everybody else. Creating your "data diet" might be one of the most important choices you make as a leader. Pick them well and review them frequently, and a handful of metrics can tell you where your team needs help, show you how to replicate your wins, and make you look very, very good in front of your CEO, your board, and your investors. It's not hard. It's actually kind of fun. And it all starts with selecting the right questions. Here's the template I use with my companies to simplify their data diets - with some real questions, metrics, and targets I use with my CROs to prioritize their most important KPIs and help them get a better grip on their businesses. I'm curious: - What's in your data diet? - What are your most important metrics? - And how do you talk about them with your team?