1. Key Performance Indicators
Jean Roberson

2. Key Performance Indicators
KPIs evaluate the success of an organization or of a particular activity in which it engages.
Often success is simply the repeated, periodic achievement of some levels of operational goal (e.g. zero defects, 10/10 customer satisfaction, etc.), and sometimes success is defined in terms of making progress toward strategic goals

3. Key Performance Indicators
Quantitative indicators that can be presented with a number.
Qualitative indicators that can't be presented as a number.
Leading indicators that can predict the outcome of a process
Lagging indicators that present the success or failure post hoc
Input indicators that measure the amount of resources consumed during the generation of the outcome
Process indicators that represent the efficiency or the productivity of the process
Output indicators that reflect the outcome or results of the process activities
Practical indicators that interface with existing company processes.
Directional indicators specifying whether or not an organization is getting better.
Actionable indicators are sufficiently in an organization's control to effect change.
Financial indicators used in performance measurement and when looking at an operating index.

4. What really matters?? Revenue and Sales Metrics Historical Performance
“If you don’t have revenue you are not an entrepreneur”
Revenue and Sales Metrics
Historical Performance
Contracts
Revenue
Customers
Monthly recurring revenue (MRR)
Annual recurring revenue (ARR)
Revenue per customer
Lifetime Value (LTV)
Churn

5. What really matters?? Revenue and Sales Metrics Predictive
“If you don’t have revenue you are not an entrepreneur”
Revenue and Sales Metrics
Predictive
Marketing Qualified Leads(MQL)
Sales Qualified Leads(MQL)
Trials
Conversion Rates
Pipeline
Churn
Month over month growth
Increased or decreased revenue per customer

6. What really matters?? Revenue and Sales Metrics Customer Health
“If you don’t have revenue you are not an entrepreneur”
Revenue and Sales Metrics
Customer Health
Trouble tickets
Time to response
Customer satisfaction
Returns
Renewals
Cancellations
Product usage or activity

7. What really matters?? Financial
“Never run out of cash”
Financial
Burn Rate – how much cash are you burning each month – cash from customers less cash expenses
Months of burn – how many months before you run out of cash?
Revenue
Growth rates
Market share
Margin
Cash flow breakeven – when do you stop burning cash?

8. What really matters?? Product Milestones Achieved Product Roadmap
“Don’t let great get in the way of good”
Product
Milestones Achieved
Product Roadmap
Release Schedule
Minimal Viable Product (MVP)
Customer input
What will customers pay?
How much will it cost to produce?

9. How to present??
“Don’t let great get in the way of good”

11. * *
* = Projections

13. Key Metrics – MRR – Customers – Cash Burn
2017*
2016*
Q1 16
Q2 16
Q3 16*
Q4 16*
MRR (000’s)
360
440
500
650
New MRR (000’s) 60 90
150
% Growth in MRR
17%
23%
10%
32%
MRR Churn
(0%)
(2%)
Enterprise Customers 50 59 64 80
Average MRR/Customer
7330
7450
7500
8000
Net Cash Burn
(220)
(100)
(200)
*= Projections,
Contracts are billed annually in advance