-Sales: Close 3 new customers or bring in $1m in revenue (output) BY cold calling 50 customers this month (input)
-Product: Improve conversion rate by 5% (O) BY interviewing 10 customers to improve cust exp (I)
But some are Input fans….
medium.com/parsa-vc/what-…
I believe the decision of whether to focus on measuring Inputs v. Outputs depends on the type of opportunity we are evaluating.
Great book btw
amazon.com/Thinking-Bets-…
espn.com/pdf/2016/0406/…
But there are other considerations beyond length of the feedback loop.
There are exceptions, mostly in analytically minded PE. TA Associates/Summit ($20b AuM+) were classic examples of caring about process - with team members having B2B sales funnels (cold-calling metrics)
“We don’t really have a sourcing process, deals just kind of come in.”
“We don’t put together materials about the opportunity. People just sort of talk it out.”
Common theme? No rigorous process that focuses on Inputs.
They ruthlessly focus on Outputs. And kick out the investment professionals that aren’t delivering. When someone at @sequoia isn’t adding value…….
fortune.com/longform/klein…
mckinsey.com/~/media/mckins…