Roy Cooke on scaling a business and KPI hierarchy
May 04, 2020 | By Roy Cooke
In this podcast episode you can learn about:
- Common mistakes when scaling a business from a team of 25 to 30 or more. Roy talks about what to expect and what to look out for, including setting up the right management, right metrics and right sales team.
- As a business leader, find out what you need to do to engage and redirect the company’s attention; big hint: Data has a better idea.
- Determine which KPI matter. The often forgotten significance of “unit economics” – the direct revenues and costs associated with a specific product or business model. This is a basic measure but often missed as companies, new or established, scale getting lost in vanity metrics. Measuring unit economics allows business leaders to make better decisions, from agreeing to “proof of concept” to winning a new customer and comparing it to the opportunity cost of developing your product roadmap.
- Why is it important to get different perspectives, including speaking to other founders, investors, and advisers before making a strategic decision?
- What does it mean to be “decisive”? How the effective management of natural biases and irrational thinking makes better business decisions. First, determine a wide range of options, then assess the validity of the assumptions behind them.
- Lastly, Roy covers the use of “strategic partnerships” and why the earlier you establish them, the better. HIVERY, for instance, had a natural strategic partnership with The Coca-Cola Company and Data61/CSIRO (as investors). Leading to the scaling and expansion of both the number of locations (USA and Japan) as well as a wider range of new products.