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STEP 3: Prioritize

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Once you’ve got everyone’s metrics suggestions, you’re going to go through them together, get rid of the duplicates, and start dividing them up. How you divide them up is up to you. You can bundle them by how hard they are to measure or how accurate they are or whether the team feels they’re stretch goals. But it’s important to understand them all.

Your job is to pick three key results that you feel you can track over the next quarter to understand whether you’re making progress. You shouldn’t pick them all from the same category. You don’t want three revenue metrics. If you choose only revenue, unscrupulous employees may game that number at the expense of other key metrics, such as retention. Pick metrics that balance the others, such as one that reflects revenue, one that reflects customer satisfaction, and one that reflects acquisition.

At this point, you’ll also want to give some thought to what Christina called “health metrics.” These are the metrics that you’re not going to let go to hell while you’re moving toward your goal. In other words, if your main goal is growth in China, you shouldn’t let your revenue from all other parts of the world suffer as a result of it, unless that’s an intentional sacrifice that you’re making short term. If you’re trying to improve revenue, you shouldn’t ruin your long-term retention metrics to do so. What your health metrics are is up to you, but make sure to pick at least three. There’s more information about picking the right metrics in Chapter 11.

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