https://www.youtube.com/watch?v=3oD41B66NsM

1 00:00:00.000 --\> 00:01:00.000 if you think about every piece of your
business right now all of the people that report to you there's
typically a metric that you're trying to push but something you're
trying to also conversely not have happen \[Music\] uh i'll make this a
short one for you i just got off a call uh with a company that i have a
vested interest in um and so uh we were talking about how to set up the
management metrics uh in place for the business as we're trying to scale
it and so one of uh one of the things i picked up from andy grove in uh
shoot what is called high output management i think um is paired metrics
and um it was it was just a great epiphany for me and so i'm going to
share it with you so the way that any growth who's the founder of intel
very smart dude manages each of the roles within the company is that he
tries to put paired metrics in place so it's not just

2 00:01:00.000 --\> 00:02:00.000 number of sales or just closing
percentage or just insert one thing here right most times and this is
just myself included i would usually should be like this is the one key
metric that i want to look at right this is the one thing that matters
for this position but if you think a little bit more about it um it
tends to be two that are in parallel all right and so what it does is
help you helps you manage the balance or the dichotomy between the
performance enroll and typically it'll be between speed or output in
terms of total volume and quality all right and so the way that you
balance this within any position would be for example if you're talking
to a salesperson it would be total number of sales against refunds back
outs all right if you're looking at a customer service position it might
be speed of ticket resolution or total number of tickets handled and
customer satisfaction or uh nps or like a promoter score right uh so
that would be a balance between

3 00:02:00.000 --\> 00:03:00.000 two different metrics that you're that
you're looking at and then that way because at the end of the day you
you never really want to because a lot of times in business it's not
about either extreme it's about managing a dichotomy of being uh am i
being micromanaging or am i delegating too much right like is either of
them wrong no you want to follow kind of right in that middle path and
in different times you might lean towards one area or the other area
more but when you're looking at each component of the business you can
look at balance metrics and so um i'll break down more examples because
i think it might be useful for you so if you're looking at a marketing
position it's going to be total number of applications against qualified
applications right so it's like okay this is the total volume i got but
how many were qualified right um the next would be the sales guy which i
just went over like total sales volume or closing percentage against
backouts all right the service position uh total number of uh responses
and or tickets uh handled or customer uh complaints resolved or speed of
resolution

4 00:03:00.000 --\> 00:04:00.000 against uh the quality score right um
on the back end let's see i'm trying to think of other positions that
you can have for this uh i mean like right now obviously because i'm
live um but if you think about every piece of your business right now
all of the people that report to you there's typically a metric that
you're trying to push but something you're trying to also conversely not
have happen and so if you can define both of those things for the person
then you can push as hard as you can on the top the top side right the
speed or the volume metric and balance it so another example is if
you're in a physical products business it would be inventory against
shortages right you don't want to have tons and tons of inventory
because that's not good you have lots of cash that's sitting there it's
not good for the business it's dangerous for the business but if you
just say hey i want you to just keep our inventories as low as possible
right then you're going to start having shortages right and so you want
to balance inventory against shortages and then that's the metric that
you're reporting

5 00:04:00.000 --\> 00:05:00.000 on for that position right so for me
that would be my finest department who's managing that component of our
business in the supplement side right um uh taxes versus audits right or
i you know any kind of issue that you have the irs and so with each of
these things that have you have the positive thing which you're going
for against the negative thing you're trying to avoid and so um i want
to call this the sweet spot which clearly i didn't and i'll name it
later um but that's the managing the dichotomy in management using
parallel metrics will get you so much closer to the sweet spot of
optimum performance for each of these roles and also going through the
mental exercise for yourself will help you to find those things for each
of the roles in your business and ultimately the only thing that's going
to allow you to scale the business uh if you're in the service space
which many of the people are listening are is initially it's going to be
your ability to to train people and onboard people right so assuming
your culture and your training your training gets them up and going
culture keeps them going right um and then the keeping them going is

6 00:05:00.000 --\> 00:06:00.000 making sure that you're monitoring the
right things for them so you can get the outcome that you really want
right and so um i just had this uh call with the founder of that
business that i'm now invested in um and we were talking about how we're
setting that business up to scale so that each of the roles that we have
um get balanced out and so for there we have uh image editors so we can
see the total number of images they're edited it's a photography based
business um against the number of callbacks or corrections that need to
happen and so you can see this in virtually every position that exists
within your business but if you simply look at that name them and
explain it to the person then they'll understand everything that you
want and then you'll ultimately make more money and then they will feel
like they have more clarity and if they don't understand how to do those
things then you train right and that's the entire that's the whole game
is you train them you give them the two metrics you walk the middle and
then that is how you maintain uh high level performance over an
organization so um shout out to andy grove for being smarter than uh me
hopefully that was useful for you for me

7 00:06:00.000 --\> 00:07:00.000 that was a huge takeaway uh when i was
going through his book um and so use it make more money have higher
profits have a happier team have a happy wednesday lots of love catch
you soon you
