Defining goals and KPIs
In this Wednesday episode of "MattGron's Scaling Up Journey" Mattias shares his thoughts on why clear role descriptions, goals and KPIs are so important and why one should never hide the truth from one's team.
Make the contribution clear
At the beginning of the year, Mattias realized that some people were struggling to understand and explain how their daily work helps deliver on iGoMoon's company purpose, strategy, and brand promise. Because of that, Mattias currently works on improving role descriptions, goals, and KPIs since he wants to make it more clear for everyone involved what each individual person is contributing to at iGoMoon.
Let people define “how”
Mattias shares that over the years he has learned more about the difference between "what" and "how" in that context. As an entrepreneur his need for control made him define the "how" for his colleagues, instead of giving them a chance to define the "how" for themselves. That's why in the current process of defining the role descriptions and responsibilities, he tries to focus on the "what" part so that everyone can define their own "how".
He also breaks down how the KPIs and goals look like at iGoMoon.
The KPIs are:
- Profit per X (retainer)
- Brand promise score (net promoter score)
- Labor utilization rate (LUR)
What is marbles?
The last KPI "marbles" refers to a concept that Mattias introduced to visualize the progress the team is making towards the company's goals. He placed a jar at the office that is being filled with marbles, according to the current financial progress. One marble e.g. represents a value of 1.000€. Due to Covid, that jar of marbles has temporarily been digitized to an online spreadsheet. Marble in Swedish is also slang for "cash" - to make things more fun :)
Leading with transparency
One of the reasons why Mattias has started to visualize the (financial) progress of iGoMoon has its roots in the early start-up years. During the first years, a proper cashflow was always tough. At one point the situation was so bad, that he could not pay salaries or the suppliers. Despite some advice that he got, not to tell anyone about the situation, he chose to be 100% transparent and informed his team. He drew everything on a whiteboard, explained where the company was at at that stage and what would be needed to do in order to change the situation. Of course, some people left after this incident, but the people who stayed accomplished more together than ever before.
💡 EPISODE TAKE AWAY:
Mattias experienced that being transparent and honest is the key to success. Don't try to hide things from your team, eventually, people will find out anyway. Visualize the goals and the progress and make the process fun.
What is your thoughts? Please let us know!