Discovery-Driven Growth by Unknown

Author:Unknown
Language: eng
Format: epub
Published: 2019-11-17T16:00:00+00:00

If You Don’t Know Your Current Key Metrics…

In a previous book, we suggested ways to identify your key metrics.18 You can consult that list or visit www.discoverydrivengrowth.com, where we provide an exercise you can do to identify the key metrics that are most relevant to your industry.

A word of warning here that we cannot overemphasize: You do not need highly accurate data. You need plausible benchmarking data—plausible evidence that the metrics you are considering are in fact indicative of profits and profit growth and consistent with the way you are planning to differentiate your offering.

The point of a key metrics analysis is to estimate the impact of your business design on the customer experience you are seeking to create. What you are trying to establish is whether, relative to competing offerings, you can create a compelling set of attributes that enough customers will value. For instance, in “Shaking Up the Flower Business with a Different Business Model” (page 100), Proflowers’ radical departure from existing norms in the flower business let it connect directly with customers, offer lower prices, and deliver fresher flowers. It’s important to realize that key metrics on their own are not particularly important—it’s what they ultimately do for customers that you want to understand.

In the next chapter, we show you how these assumptions get translated into operational numbers and linked to the plan’s unfolding financials. We give some detailed examples using the BioBarrier model.

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