Simple BI Strategies Can be Effective

by John D. Beneventi 16. December 2020 23:50

 

Cloud Flare Co-founder and COO, Michelle Zatlyn.

 

Business Intelligence and data analytics provide many measurement solutions. The key to using BI properly is to determine a set of measurements that, if met, ensures the desired outcome. You don’t need to dissect data in multiple ways to have an effective measurement of company success. The goal is to keep it simple, relevant, and tied to the overall business plan and strategy you are deploying in your company.

Case in point:  I recently watched an interview with the Co-founder and COO of Cloud Flare, Michelle Zatlyn, who mentioned that her team had selected 5 key performance indicators (KPIs) to measure the success of their start-up company. The team came up with these metrics to help communicate the health of the business amongst themselves and the board of directors. They did not change these KPIs for the first six years of the business and they displayed on page 1 of every deck presented to the board with both current numbers and trends. Zatlyn did not want to use too many KPIs as this could cause the team to lose focus.

Early on, revenue was not a good metric (as they were a start-up), so they did not use revenue to measure success. Alternatively, they focused on metrics that drove behaviors to yield the desired outcomes and subsequently led to financial success (leading indicators).

Here is what her team came up with:

1.       # of customers (domains) signing up

2.       # of domains leaving

3.       # of page views

4.       Cost to service a byte of traffic

5.       Speed of Page loads (faster and safer)

 

This is an example of measuring leading indicators that will help your team focus on near term actions that lead to long term desired outcomes. While the mortgage industry has hundreds of measurements, it is wise to choose several leading indicators that you can easily measure daily. This will help the team-work cohesively and with purpose. A simple approach to BI using a few metrics, measurements, and reports can be an effective way to start a long-term strategy and implementation.

Contact us for more information about how you can use improved metrics to measure your business.

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