3-year KPIs

Indicating long-term strategic success

The longer term (strategic) KPIs are those that most reflect the long-term success of $COMPANY, in our own eyes but also in the eyes of investors.

Outside-in, comparables perspective

This means that the longer term indicators should be:

  1. outside-in: does the metric reflect an output/outcome relevant outside the company? This means we are typically looking for lagging metrics such as running ARR, not internal/process metrics such as # of prospect meetings held
  2. comparable: we should pick the strategic metrics from a common set of metrics that many other startups use too, so that we can benefit from investors’ and advisers’ experience with benchmarks and optimization.
  3. well-chosen: we should not automatically compare ourselves to other companies on all possible metrics, just those that are most relevant for our particular business model.

Current long-term metrics

  1. Growth in Annual Recurring Revenue Growth
  2. Number of paid accounts
  3. Payback time for Customer Acquisition Cost
  4. ARR per full-time equivalent (employee)
  5. Operating profit per paid account

New content

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