Decoding Metrics: A Toolkit for Founders

Nancy Bush helps founders build metric-driven cultures and finance teams. Her career spans CFO positions at the likes of Fortinet and Anomali. She joins us in the “Q&A” Series with direct and actionable advice on metrics that matter.
Q: What defines a valuable metric?
A good metric should be simple and executable. If the operational team isn’t aware of a metric, they don’t understand it, or aren’t regularly looking at it, it’s probably the wrong one. Strong metrics should be something everyone in the org knows and responds to. A clear, shared goal that promotes focus and feels achievable. It falls on the CFO/management to identify the right metrics and transform them into motivational tools.
Q: What are common misconceptions about metrics?
Complex isn’t better. The truth is simplicity is effective. Key metrics must be explained easily in simple terms to share with key stakeholders and employees. The goal is to motivate teams to not only examine metrics but also make informed decisions to influence positive change and drive the business.
Q: How many metrics should a founder track?
A business will likely track a long list of metrics, but a founder should regularly track 3 to 5. More isn’t realistic, especially during a brief daily team huddle.
Q: How should metrics be shared, and how often?
Consistently sharing the same 3 to 5 metrics with employees is crucial for engagement. It will help them understand their role in achieving company goals. It serves as a catalyst, empowering employees to collaborate and contribute towards achieving company goals.
Q: What if all metrics are in the green?
I believe there should always be one metric on fire or you aren’t going fast enough. If one of your 3 to 5 doesn’t have a hot item, it is either breaking, which is crucial information, or the company is not chasing big enough goals – a red flag for a startup.
Q: When should you shift metrics & track something new?
When your key metrics are consistently green or yellow. The minute you start achieving them all, it's time to evolve and set new challenges.
Q: What top metrics should founders be following?
Founders should prioritize cash, followed by people management. Deploying an org chart is crucial for efficient team utilization. Clear metrics with accountable owners, meaning individuals capable of and responsible for driving them to closure, are essential.
Q: What is the one thing you should always track – regardless of the stage of your business?
Headcount. After all, people behind the headcount are managing the metrics and business. Also, the prevalence of contracted often international workers means true headcount costs can be easily obscured and accurate headcount analysis is critical. Hidden people aren’t managed, which means there is a chance they are both more expensive and less effective than you’d like.