Measuring Business Performance

Leaders, if you're going ahead with mass layoffs, you can't seriously be thinking that your #diversity, #equity, or #inclusion work will have any credibility left after the fact. Fundamentally, DEI work is about showing people that they matter by building a workplace where they can thrive. And fundamentally, mass layoffs communicate the exact opposite: that no matter a person's skill, experience, productivity, contribution, passion, or loyalty, they ultimately are just another cost to be cut. That people mean nothing in the face of short-term profit. The consequences of mass layoffs on your people, your biggest assets, are immediate and catastrophic. 📉 One study found a 41% decline in job satisfaction among survivors of a layoff, leading to a 36% decline in their desire to stay with the workplace. 📉 Another study found that a 1% workforce layoff resulted in a 31% increase in voluntary turnover. 📉 One study found a 20% decline in job performance, with another finding that 77% of layoff survivors see more errors and mistakes made. 📉 Another study found that layoffs tanked the quality of products, the safety of the workplace, and the quality of layoff survivor mental health and wellbeing. 📉 A bevy of other studies find a cascading set of issues triggered by layoffs that create a vicious cycle: worse morale and wellbeing leads to poorer job performance, overwork and forced productivity drives mass exoduses of skilled workers; reputational damage and loss of trust dampens the ability to hire fresh talent. Trying to achieve any sort of DEI impact amid this kind of avoidable chaos is like trying to renovate your house after setting it on fire. It's downright offensive to employees, especially those with marginalized identities, to be asked to continue their unpaid, voluntary efforts to benefit the business after you've destroyed any reason for them to undertake this extra work. It's a moot point—they're far too busy applying to your competitors, anyways. This is the point in time when those workplaces and leaders with empty promises and performative actions will be weeded out from those that get ahead by doing right by their people, their customers, and the world. There are many ways for a workplace to earn a spot in the latter group, but in case it wasn't clear? Mass layoffs aren't one of them.

In automotive, everyone stares at the same KPIs. Units. Gross. CSI. Nothing wrong with that, but KPIs only tell you where you landed. They don’t tell you how much you left on the table. Jay Abraham calls them OPIs.  Overlooked Performance Indicators. The tiny leverage points inside a dealership that almost no one pays attention to. And he’s right. Because when we started examining our own operation through that lens, here’s what we saw: Most of the biggest opportunities weren’t new initiatives. They were already happening… just not maximised. Things like: - How many service customers get an equity scan, every single day. - How quickly calls are returned. - How many unsold showroom ups get re-engaged the same day. - How many customers are actually aware they can leave service in a new car with a lower payment. - How many of yesterday’s RO customers got a follow-up. These aren’t budget items. They’re behaviour items. And when you improve several of these by just 10%? It’s not 10% growth. It compounds. Jay calls it multiplicative, and he’s not exaggerating. We saw it firsthand. No new building. No new staff. No miracle inventory. Just a team willing to question everything, tighten every gap, and squeeze every ounce of value out of the opportunities we already had. The result? One of the best months we’ve ever had. Because we got better at the invisible work that drives the visible numbers. That’s the real lesson here: The dealership doesn’t transform because of a single big move. It transforms because the team stops walking past the small ones. If you’re running a dealership, here’s a question worth asking: What are the OPIs in your business and who’s watching them?

Your waitlist has 10,000 signups? That's cute. Let me tell you about three startups I watched implode last year - all with waitlists over 5,000. The pattern was painful to watch: - Founders spending months "nurturing" their waitlist instead of building. - Weekly newsletters to people who'd never pay - "Community building" with tire-kickers Here's what no one tells you about traction: Interest is when people say "cool idea!" Intent is when they say "my business is losing money without this" Seen this over and over again. Startups with 25,000 signups pre-launch. Built for 6 months based on waitlist "feedback." Launch day reality? 47 conversions. Why? 𝗧𝗵𝗲𝘆'𝗱 𝗯𝘂𝗶𝗹𝘁 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗰𝘂𝗿𝗶𝗼𝘂𝘀, 𝗻𝗼𝘁 𝘁𝗵𝗲 𝗱𝗲𝘀𝗽𝗲𝗿𝗮𝘁𝗲. The signals that actually matter: • They email you angry because they need it NOW • They offer to pay for a half-built product • They're actively losing money without your solution • They're using painful workarounds and hate every minute Your early adopters should be in pain. Physical, emotional, or financial pain from the problem you're solving. If they're not feeling pain, they're not your customer. They're your audience. The difference? Customers pay with their wallet Audience pays with their attention Most fatal founder mistake I see: Building for the audience, not the customers. Want to test real intent? Try this: 1. Email your waitlist 2. Tell them you're launching early 3. Share a payment link for 50% of your planned price 4. Watch what happens The responses will tell you everything: "Great idea, but maybe later" = No intent "When it has X feature" = No intent "Stripe notification" = Intent Truth: A 100-person waitlist of people in pain beats a 10,000-person waitlist of people who think you're "interesting." Stop measuring interest. Start measuring desperation. Your waitlist size is a vanity metric. Your customers' pain level is your north star. Be needed, Not liked. Solve an 𝘂𝗿𝗴𝗲𝗻𝘁 pain.

Companies and their CEOs obsess over Profitability KPIs. But measuring Profit doesn’t drive Profit. Here’s the problem: Most leaders don't track the right metrics. They don't understand why they matter. They ignore stakeholder perspectives. If you don’t know and act on what the numbers are telling you - you’re not managing profitability. You’re just collecting data. Let’s fix that. Here are 16 Profitability KPIs every CEO and CFO needs to master—and how to extract the insights that drive smarter decisions: ■ Efficiency and Margins 1// Gross Profit Margin Ratio ↳ Why it matters: high margins signal strong pricing power or cost efficiency. 2// Contribution Margin ↳ Why it matters: critical for setting prices, understanding break-even points, and ensuring your products are profitable. 3// Operating Profit Margin Ratio ↳ Why it matters: reveals how well you’re managing core expenses 4// Net Profit Margin Ratio ↳ Why it matters: measures whether your business model scales profitably. 5// Return on Assets (ROA) ↳ Why it matters: shows how effectively your assets generate profit. 6// Return on Equity (ROE) ↳ Why it matters: measures investor return on their investment. 7// Return on Investment (ROI) ↳ Why it matters: helps prioritize high-ROI projects and avoid initiatives with weak returns. 8// Return on Capital Employed (ROCE) ↳ Why it matters: indicator for how well your business uses all available capital to drive profits. ■ Earnings and Market Performance 9// Earnings per Share (EPS) ↳ Why it matters: tells shareholders how much value each share represents. 10// Price-to-Earnings (P/E) Ratio ↳ Why it matters: gauges whether your stock is fairly priced based on earnings. 11// Dividend Yield Ratio ↳ Why it matters: income-focused investors seeking regular returns. 12// Dividend Payout Ratio ↳ Why it matters: balances reinvesting for growth with rewarding shareholders. ■ Cash Flow and Productivity 13// Operating Cash Flow Margin ↳ Why it matters: shows how well you convert revenue into cash. 14// Profit Per Employee ↳ Why it matters: tracks workforce productivity—a crucial metric for scaling efficiently. ■ Advanced Profitability Metrics 15// Economic Value Added (EVA) ↳ Why it matters: measures value above the company's cost of capital. 16// Break-even Revenue ↳ Why it matters: knowing your break-even helps you set realistic sales targets and avoid losses. The takeaway? Stop chasing KPIs for the sake of it. Start using them to lead smarter and grow faster. Want to join the 1% of CEOs who lead with financial intelligence? ▷▷▷ Join me tomorrow for a free webinar for CEOs, VPs, Managers, and leaders and start making 100% better business decisions: https://bit.ly/ceojan18 ▷▷▷ Transform your financial acumen in 6 weeks - live program, spots are limited, starts January 29: https://bit.ly/3ZCI0kr ♻️ Like, Comment, Repost if this was helpful. And follow Oana Labes, MBA, CPA for more

Over the last year, I’ve seen many people fall into the same trap: They launch an AI-powered agent (chatbot, assistant, support tool, etc.)… But only track surface-level KPIs — like response time or number of users. That’s not enough. To create AI systems that actually deliver value, we need 𝗵𝗼𝗹𝗶𝘀𝘁𝗶𝗰, 𝗵𝘂𝗺𝗮𝗻-𝗰𝗲𝗻𝘁𝗿𝗶𝗰 𝗺𝗲𝘁𝗿𝗶𝗰𝘀 that reflect: • User trust • Task success • Business impact • Experience quality    This infographic highlights 15 𝘦𝘴𝘴𝘦𝘯𝘵𝘪𝘢𝘭 dimensions to consider: ↳ 𝗥𝗲𝘀𝗽𝗼𝗻𝘀𝗲 𝗔𝗰𝗰𝘂𝗿𝗮𝗰𝘆 — Are your AI answers actually useful and correct? ↳ 𝗧𝗮𝘀𝗸 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗶𝗼𝗻 𝗥𝗮𝘁𝗲 — Can the agent complete full workflows, not just answer trivia? ↳ 𝗟𝗮𝘁𝗲𝗻𝗰𝘆 — Response speed still matters, especially in production. ↳ 𝗨𝘀𝗲𝗿 𝗘𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁 — How often are users returning or interacting meaningfully? ↳ 𝗦𝘂𝗰𝗰𝗲𝘀𝘀 𝗥𝗮𝘁𝗲 — Did the user achieve their goal? This is your north star. ↳ 𝗘𝗿𝗿𝗼𝗿 𝗥𝗮𝘁𝗲 — Irrelevant or wrong responses? That’s friction. ↳ 𝗦𝗲𝘀𝘀𝗶𝗼𝗻 𝗗𝘂𝗿𝗮𝘁𝗶𝗼𝗻 — Longer isn’t always better — it depends on the goal. ↳ 𝗨𝘀𝗲𝗿 𝗥𝗲𝘁𝗲𝗻𝘁𝗶𝗼𝗻 — Are users coming back 𝘢𝘧𝘵𝘦𝘳 the first experience? ↳ 𝗖𝗼𝘀𝘁 𝗽𝗲𝗿 𝗜𝗻𝘁𝗲𝗿𝗮𝗰𝘁𝗶𝗼𝗻 — Especially critical at scale. Budget-wise agents win. ↳ 𝗖𝗼𝗻𝘃𝗲𝗿𝘀𝗮𝘁𝗶𝗼𝗻 𝗗𝗲𝗽𝘁𝗵 — Can the agent handle follow-ups and multi-turn dialogue? ↳ 𝗨𝘀𝗲𝗿 𝗦𝗮𝘁𝗶𝘀𝗳𝗮𝗰𝘁𝗶𝗼𝗻 𝗦𝗰𝗼𝗿𝗲 — Feedback from actual users is gold. ↳ 𝗖𝗼𝗻𝘁𝗲𝘅𝘁𝘂𝗮𝗹 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 — Can your AI 𝘳𝘦𝘮𝘦𝘮𝘣𝘦𝘳 𝘢𝘯𝘥 𝘳𝘦𝘧𝘦𝘳 to earlier inputs? ↳ 𝗦𝗰𝗮𝗹𝗮𝗯𝗶𝗹𝗶𝘁𝘆 — Can it handle volume 𝘸𝘪𝘵𝘩𝘰𝘶𝘵 degrading performance? ↳ 𝗞𝗻𝗼𝘄𝗹𝗲𝗱𝗴𝗲 𝗥𝗲𝘁𝗿𝗶𝗲𝘃𝗮𝗹 𝗘𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆 — This is key for RAG-based agents. ↳ 𝗔𝗱𝗮𝗽𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗦𝗰𝗼𝗿𝗲 — Is your AI learning and improving over time? If you're building or managing AI agents — bookmark this. Whether it's a support bot, GenAI assistant, or a multi-agent system — these are the metrics that will shape real-world success. 𝗗𝗶𝗱 𝗜 𝗺𝗶𝘀𝘀 𝗮𝗻𝘆 𝗰𝗿𝗶𝘁𝗶𝗰𝗮𝗹 𝗼𝗻𝗲𝘀 𝘆𝗼𝘂 𝘂𝘀𝗲 𝗶𝗻 𝘆𝗼𝘂𝗿 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝘀? Let’s make this list even stronger — drop your thoughts 👇

How do we know if we’re actually becoming an AI-first company? That’s the question two customers asked me this week—and it’s a really fair one. AI buzz is everywhere, but how do you know if you’re making real progress? Here are 5 metrics every company should track to measure whether they’re truly on the path to becoming AI-first: 1. Revenue per Employee (Lagging Indicator) The ultimate test of success with AI: are you generating more value for every employee you hire? AI should amplify output, not just automate tasks. When each person drives more revenue, you know productivity is compounding. 👉 It's the north star, but it takes time to move. 2. Customer Satisfaction (CSAT) (Lagging Indicator) AI-driven productivity is meaningless if customer experience suffers. CSAT should hold steady—or better yet, improve—as AI delivers faster, smarter, more personalized service. 👉 If it drops, your AI strategy is likely misaligned with customer needs. 3. % of Teams with Access to AI Tools (Leading Indicator) You can’t be AI-first if your teams aren’t equipped. Measure how many employees have easy access to approved AI tools and whether those tools are embedded in their daily workflow. 👉 Access is the foundation. No access, no adoption. 4. Active AI Usage (Daily/Weekly) by Team (Leading Indicator) This is where the rubber meets the road. Track actual usage. Who’s using AI every day or week? What teams are lagging behind? 👉 To be AI-first, every team should be using AI every week—if not every day. 5. % of Work Carried Out by Agents (by Function) (Leading Indicator) This is the most transformational shift. What % of your team’s output is now driven by agents or AI copilots? In marketing, it could be content drafting. In sales, meeting booking. In support, ticket resolution. 👉 When agents do the work, your people focus on higher-leverage thinking—and the flywheel starts turning. Bottom line: Becoming AI-first isn't about buying tools, it’s about changing how work gets done. When you combine these 5 metrics, you get a clear picture of progress—and the compounding path toward higher productivity, better outcomes, and real transformation. What would you add to the list?

You're a #CTO. Your board asks: "What's our ROI on AI coding tools?" Your answer: "40% of our code is AI-generated!" They respond: "So what? Are we shipping faster? Are customers happier?" Most CTOs are measuring AI impact completely wrong. Here's what some are tracking: - Percentage of AI-generated code - Developer hours saved per week - Lines of code produced - AI tool adoption rates These metrics are like measuring how fast your assembly line workers attach parts while ignoring whether your cars actually start. Here's what you SHOULD measure instead: 1. Delivered business value 2. Customer cycle time 3. Development throughput 4. Quality and reliability 5. Total cost of delivery (not just development) 6. Team satisfaction Software development isn't a typing competition—it's a complex system. If AI makes your developers 30% faster but your deployment takes 2 weeks and QA adds another week, your customer delivery improves by maybe 7%. You've speed up the wrong part. The solution: A/B test your teams. Give half your teams AI tools, measure business outcomes over 2-3 release cycles. Track what customers actually experience, not how much developers produce. Companies that measure business impact from AI will pull ahead. Those measuring vanity metrics will wonder why their expensive tools aren't moving the needle. Stop measuring how much code AI generates. Start measuring how much faster you deliver value to customers. What are you actually measuring? And is it moving your business forward? -> Follow me for more about building great tech organizations at scale. More insights in my book "All Hands on Tech"

Are you measuring what matters in your organization? A comprehensive measure of organizational effectiveness includes much more than profit margins and growth rates. The market and media often celebrate companies that show rapid financial growth or high profitability, leading to a cultural bias towards these metrics as signs of success BUT the tide is slowly turning- more businesses are recognizing the long-term value of a holistic approach to effectiveness and success. Many more businesses are embracing the concept of the "Triple Bottom Line," which measures success not just by financial profit ("Profit"), but also by the company's impact on people ("People") and the planet ("Planet"). HOWEVER 🚨 There is more work to be done! The prioritization of non-financial elements of organizational success can get pushed aside when financial pressures hit or quick results are valued. You have probably heard the phrase "What gets measured gets managed". This is generally true. Quantifying and measuring non-financial aspects of effectiveness, such as employee well-being, social impact, and workplace culture, is hugely important but remains challenging. 💡 Here's some straightforward steps to move you towards a more holistic approach to measuring success: 𝐒𝐭𝐚𝐫𝐭 𝐰𝐢𝐭𝐡 𝐜𝐥𝐞𝐚𝐫 𝐠𝐨𝐚𝐥𝐬: Define what holistic success means for your organization. This could include specific targets related to employee well-being, social impact, and environmental sustainability. 𝐄𝐧𝐠𝐚𝐠𝐞 𝐬𝐭𝐚𝐤𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬: Talk to employees, customers, and community members to understand what aspects of your business matter most to them. Their insights can help shape your holistic success framework. 𝐂𝐡𝐨𝐨𝐬𝐞 𝐫𝐞𝐥𝐞𝐯𝐚𝐧𝐭 𝐦𝐞𝐭𝐫𝐢𝐜𝐬: Based on your goals and stakeholder feedback, pick metrics that are meaningful and manageable. For example, employee satisfaction can be measured through regular surveys, while environmental impact can be tracked through energy consumption or waste reduction metrics. 𝐔𝐬𝐞 𝐞𝐱𝐢𝐬𝐭𝐢𝐧𝐠 𝐟𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤𝐬: Look into established frameworks (like GRI or B Corp standards for sustainability; Gallups Q12 Engagement Survey for employee engagement or the Denison Organizational Culture Model to measure workplace culture). There are existing frameworks for most known elements of organizational effectiveness so it's just a matter of looking into them. 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐞 𝐢𝐧𝐭𝐨 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧-𝐦𝐚𝐤𝐢𝐧𝐠: Ensure that these holistic metrics are part of regular business reviews and decision-making processes, not just side projects. 𝐑𝐞𝐩𝐨𝐫𝐭 𝐭𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐭𝐥𝐲: Share your progress openly, including both successes and areas for improvement. Transparency builds trust and credibility. 𝐂𝐨𝐧𝐭𝐢𝐧𝐮𝐨𝐮𝐬 𝐥𝐞𝐚𝐫𝐧𝐢𝐧𝐠: Be prepared to adapt and refine your approach as you learn what works and what doesn't. This is a journey, not a one-time task. #organizationaleffectiveness #measurewhatmatters #leaders

Walk into any insurance office and you’ll see it the “busy crisis.” People typing, calling, updating spreadsheets… but very little that actually moves the needle. 𝐈𝐭’𝐬 𝐭𝐡𝐞 𝐦𝐨𝐬𝐭 𝐝𝐚𝐧𝐠𝐞𝐫𝐨𝐮𝐬 𝐤𝐢𝐧𝐝 𝐨𝐟 𝐜𝐡𝐚𝐨𝐬: 𝐩𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐯𝐞-𝐥𝐨𝐨𝐤𝐢𝐧𝐠 𝐬𝐭𝐚𝐠𝐧𝐚𝐭𝐢𝐨𝐧. Last week, a senior leader told me, “Our team is always swamped, yet our outcomes aren’t improving.” This is not a people problem. It’s a 𝐰𝐨𝐫𝐤𝐟𝐥𝐨𝐰 𝐝𝐞𝐬𝐢𝐠𝐧 𝐩𝐫𝐨𝐛𝐥𝐞𝐦. Insurance teams are drowning in activities that don’t create impact: 1. Endless follow-ups. 2. Duplicate documentation. 3. Manual reconciliations. 4. Reporting on reports. So you get a paradox: 𝐓𝐞𝐚𝐦𝐬 𝐥𝐨𝐨𝐤 𝐛𝐮𝐬𝐲… 𝐛𝐮𝐭 𝐭𝐡𝐞 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐬𝐭𝐚𝐧𝐝𝐬 𝐬𝐭𝐢𝐥𝐥. And the high-performing insurers are doing it right with: 𝟏. 𝐎𝐮𝐭𝐜𝐨𝐦𝐞-𝐛𝐚𝐬𝐞𝐝 𝐰𝐨𝐫𝐤𝐟𝐥𝐨𝐰𝐬 Every task tied to a single question: What business outcome does this drive....acquisition, retention, or claims experience? If the answer is unclear, it’s noise. 𝟐. 𝐓𝐡𝐫𝐞𝐞 𝐊𝐏𝐈𝐬 𝐭𝐡𝐚𝐭 𝐚𝐜𝐭𝐮𝐚𝐥𝐥𝐲 𝐦𝐚𝐭𝐭𝐞𝐫 𝐚) 𝐓𝐢𝐦𝐞-𝐭𝐨-𝐢𝐬𝐬𝐮𝐞 → how fast can a policy go live? 𝐛) 𝐅𝐢𝐫𝐬𝐭-𝐭𝐢𝐦𝐞-𝐫𝐢𝐠𝐡𝐭 𝐝𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧 → fewer loops, fewer errors. 𝐜) 𝐂𝐥𝐚𝐢𝐦 𝐫𝐞𝐬𝐨𝐥𝐮𝐭𝐢𝐨𝐧 𝐭𝐢𝐦𝐞 → the ultimate trust metric. Everything else is just ornamental. The silent crisis isn’t low productivity. It’s misaligned productivity. Fix the workflow, and suddenly the same team delivers twice the impact without working an extra minute. #InsuranceOperations #InsurTech #WorkflowAutomation #Productivity

Can you explain what happened here? If you can't, your business may be in BIG trouble. If you work in strategic finance, understanding how to comprehend + explain financial data is not a nice to have...it's a MUST. It doesn't matter whether you are presenting to leadership...the board of directors...or investors. If you don't have a tight grip on your data, you'll be faced with some catastrophic surprises. Let's learn how to interpret + present this by walking through this report together 👇 ➡️ PROFIT & LOSS SUMMARY Your P&L might look decent at first glance... We beat our bottom line net income by 14% 🙌 But a closer look reveals some important details... - Revenue is down 10% ($50K below budget) This is a pretty alarming metric and may mean that your assumptions are too aggressive here. Was it because your conversions rates were lower than expected? Was churn higher than expected? - COGS is actually BETTER than expected by 40% This makes sense...your revenue was lower, so your COGS should also be lower. But there's something more interesting to address here... your gross margin was 80%, compared to your projected 70%. While the variance is favorable it highlights an important question - do you have a strong grip on your unit economics? - Operating expenses are 10% favorable compared to budget. That's good...but why? Which accounts? Was it timing? Was it a change to your plans? - Net Other Income was -$10k compared to your projected +10k. Accounts here typically relate to interest income/expense, depreciation/amortization, and non core business activity. Although $10k may not seem like a lot, it warrants an important analysis This all leads to a $15k favorable net income, which is 14% higher than expected. All done with our analysis? Not quite... We've analyzed the PROFITABILITY of our business, now it's time to analyze our CASH FLOWS ➡️ CASH FLOWS SUMMARY This is where things get puzzling: - Collections are down $70k (78% below target 🤯 ) - Inventory up by $20k over budget - Total cash flows is $35k below budget Woah! We beat earnings but missed our cash flows by 27%?? Believe it or not, this story happens all the time...and it's up to you to see the forest beyond the trees and take action QUICKLY. ➡️ PUTTING IT ALL TOGETHER Your P&L is looking OK, but there are some strong indicators that you don't have a grip on your unit economics, and your revenue projections may be a bit overstated. But the biggest issue by far is your cash flows. You were supposed to collect $90k more than you invoiced this month but instead you only collected $20k. If you have $1m in the bank that may not be too material. But if you have $200k in the bank? Now things get more dangerous. That's why it's CRUCIAL to review this report each and every period - you don't want to be taken by surprise. === How would you interpret these results? What actions would you take? Share your analysis in the comments below 👇