From Tech Transfer Tactics: Writing on Both Sides of the Table, VC Mark Suster points out that “you manage what you measure.” Start-ups are constantly under pressure and have many distractions, so it’s invaluable to have a set of metrics that are key drivers of success. Make the goals widely available and share your most important goals with your board. “Transparency of goals drives performance because it creates a commitment and a sense of urgency,” Suster says.
Most companies have some measurements, but Suster argues they often measure the wrong things and with the wrong yardstick — either too high-level or too detailed. Here are some measurements he recommends, using a web-based business to illustrate: