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Welcome to the Jim Secrets podcast where you talk about how to get more customers how to make more per customer

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And how to keep them longer and the many failures and lessons that we have learned along the way. I hope you enjoy and subscribe

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Hey, what's going on everybody? Have you one's day? I'll make this a short one for you

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I just got off a ball with

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Conveniently the best is interesting and so we were talking about how to set up the management metrics in place for the business as we're trying to scale it

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And so one of one of the things I picked up from any Grove in shoot what is called high output management, I think

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Is paired metrics and it was it was just a great epiphany for me, and so I'm going to share it with you

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So the way that any Grove who's the founder of Intel very smart, dude

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Manages each of the roles within the company is that he tries to put paired metrics in place

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So it's not just

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Number of sales or just closing percentage or just insert one thing here, right?

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Most times and this is just myself included

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I would usually should be like this is the one key metric that I want to look at right?

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This is the one thing that matters for this position

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But you think a little bit more about it

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It tends to be two that are in parallel all right, and so what it does is help you helps you manage the balance with an

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Economy between the performance and role and typically it'll be between speed or output in terms of total volume and

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Quality, all right, and so the way that you balance this within any position would be for example if you're talking to a salesperson

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It would be total number of sales

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Against refunds backouts, all right, if you're looking at a customer service position. It might be

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speed of ticket resolution or total number of tickets handled and

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customer satisfaction or

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NPS or so like a promoter's for right?

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So that would be a balance between two different metrics that you're that you're looking at and then that way because at the end of the day

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You you never really want to because a lot of times in business. It's not about either extreme

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It's about managing a dichotomy of being am I being micromanaging or am I delegating too much right?

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Like is either of them wrong? No, you want to follow kind of right in that middle path and in different times

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You might lean towards one area or the other area more, but when you're looking at each component of the business

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You can look at balanced metrics and so I'll break down more examples to think about useful for you

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So if you're looking at a marketing position, it's going to be total number of applications

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Against qualified applications, right? So it's like okay. This is the total volume. I got but how many were qualified, right?

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The next would be the sales guy, which I just went over like total sales volume or closing percentage against

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Backouts, all right the service position told a number of

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Responses and or tickets handled or customer complaints resolved or speed of resolution against the quality score, right?

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On the back end, let's say I'm trying to think of other positions that you can have for this

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I mean like

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Right now I've obviously been playing computer live

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But if you think about every piece of your business right now and all of the people that report to you

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There's typically a metric that you're trying to push

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But something you're trying to also

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Conversely not have happened

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And so if you can define both of those things for the person then you can push as hard as you can

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On the top the top side right the speed or the volume metric and balance it

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So another example is if you're in a physical products business

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It would be inventory against shortages, right?

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You don't want to have tons and tons of inventory because that's not good. You have lots of cash that's sitting there

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It's not good for the business. It's dangerous for the business

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But if you just say hey, I want you to just keep our inventories as low as possible, right?

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Then you're going to start having shortages, right?

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And so you want to balance inventory against shortages and then that's the

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Mentoring that you're reporting on for that position, right? So for me that would be my finest department who's managing that component of our business in the supplement side, right?

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um

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Taxes versus audits right or I you know any kind of issue that you have the IRS and so with each of these things that have you have the positive thing

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What you're going for against the negative thing you're trying to avoid and so

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I want to call this a sweet spot, which clearly I didn't and I'll name it later

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But that's the managing that economy in management using parallel metrics

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We'll get you so much closer to the sweet spot of optimal performance for each of these roles

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And also going through the mental exercise for yourself will help you to find those things

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For each of the roles in your business and ultimately

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The only thing that's going to lie to scale the business

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If you're in the service space which many of the people are listening as are is initially

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It's going to be your ability to to train people and onboard people, right?

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So it's going to be your culture and your training your training gets them up up and going culture keeps them going, right?

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Most of the nation real quick if you are a business owner that has a big old business and wants to get to a much bigger business

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Going to 50 $100 million plus we would love to talk to you

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And if you like that

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We'd like to hear more about it go to acquisition.com and you can plan anywhere on the page and talk to one of our team and see if we can help you get there

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Um, and then the keeping them going is making sure that you're monitoring the right things for them

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So that you can get the outcome that you really want, right?

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And so I just had this call with the founder of that business that I'm now invested in

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And we were talking about how we're setting that business up to scale so that each of the roles that we have

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Get balanced out and so for there we have

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Image editors so we can see the total number of images. They're edited. It's a photography based business

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Against the number of callbacks or corrections that need to happen

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And so you can see this in virtually every position that exists within your business

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But if you simply look at that name them and explain it to the person then they'll understand everything that you want

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And then you'll ultimately make more money and then they will feel like they have more clarity

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And if they don't understand how to do those things then you train right and that's the entire that's the whole game

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Is you train them you give them the two metrics you walk the middle and then that is how you maintain

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High-level performance over an organization. So um shout out to Andy Grove for being smarter than

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Me hopefully that was useful for you for me. That was a huge takeaway when I was going through his book

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And so use it. Make more money. Have higher profits. Have a happier team. Have a happy one's day. Lots of love. Take you soon. Bye