Gregory ShepardArchitect, GregoryShepard.com · GregoryShepard.com · The Startup Architect | Author of The Startup Lifecycle

KPIs for CEOs & Senior Management of a Company | Gregory Shepard | Minute Mentor

4 Aug 2021 · 1 min

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1:13

In this concise mentor-style video, Gregory Shepard outlines the essential key performance indicators (KPIs) that CEOs and senior management should track to steer a company effectively. He emphasizes the need for a budget‑vs‑actual comparison to monitor financial health and runway, and then walks through a suite of growth, profitability, and customer‑centric metrics. These include dollar and percentage growth, EBITDA and gross margins, separate tracking of customer retention versus revenue retention, the CAC‑to‑LTV ratio, burn rate and runway, time‑to‑revenue, use of funds and acquisition requirements, ARR, and market‑penetration percentages (SAM and SOM). Shepard also notes the importance of monitoring costs by functional area. The overall message is that these KPIs constitute the top value drivers and should be measured distinctly to give senior leaders a clear, actionable view of company performance.

Chapters

So what are the KPIs you have as a CEO or the senior management team? First of all, you want to make sure that you have the budget, actual plan, better or worse, so you know whether you're on target on where you should be and your runway and everything is correct. You want to make sure that you're clocking growth as a dollar amount and growth as a percentage, your EBITDA margin, your gross margin, your customer retention, and your revenue retention. It's important to keep those separate. Because you have revenue consolidation. So you could lose one customer and lose 50% of your rest revenue, but your customer is just going to show one or the other way around. So make sure that you have those separate. Your CAC to LTV, of course, your burn rate and your runway, your time to revenue, which I've talked about a lot, use of funds, and your acquisition requirements. So this is, you know, the ARR you have to have or your annual recurring revenue. Your growth margin retention percentage that you have in market. So this is percentage of SAM, percentage of SOM. And these are more or less the top value drivers. Of course, you want to have cost of bifunctional area. I hope that's helpful. Thank you.