Financial metrics are useful and necessary, but they only tell part of a story. Number-crunching analysts love financial metrics because they measure results clearly, but as a manager, it’s your job to influence the inputs that drive those results. Measure things that contribute to revenue, such as customer retention, product quality, and referral rates to ensure you get the right financial results in the right way. Keep your people focused on the inputs with the highest correlation to your financial goals. If you keep tabs on these contributing factors, you’ll know when something’s gone wrong before it shows up in your results.”

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Measure Inputs, Not Just Results
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