Emilio Garcia explains why companies can't use the same metrics across all departments. Growth and profitability matter at the top level, but HR, marketing, and finance need their own proxy metrics that actually measure what they control and drive toward those bigger goals.
Chapters
And also typically you wanna have the highest market share as possible before or without becoming a monopoly because larger market share typically allows you to command a better price, which goes back again to being profitable. So growth is a great proxy for that idea. And obviously, unfortunately, We cannot ask all departments that can't directly influence 100% that outcome, right? Growth, profit margin, revenue share. We cannot tell them, you know, that's your metric. That's how I'm gonna measure your performance. It makes no sense for human resources. It doesn't make sense for finance. They can influence or contribute to that idea, but it, it will be very hard to just use that number. They have specific numbers and marketing is no different, right? We, we want to have for the department a couple of metrics that are a good proxy, a good approximation of a metric that aligns with that idea.