SUMMARY:

In this episode,Terryn and Aaron dive into the critical topic of metrically measuring your team’s performance using Key Performance Indicators (KPIs), a cornerstone of the Entrepreneurial Operating System (EOS). They explore how to create meaningful KPIs that align with job descriptions, org charts, and business goals to drive accountability and success. This episode includes practical steps for building KPIs, starting with clear job descriptions that outline measurable outcomes. Terryn shares insights on using tools like the Gap Analyzer to inventory team responsibilities and identify gaps or overlaps, ensuring every role has 3-5 core duties tied to trackable metrics. They emphasize the importance of integrating KPIs into quarterly evaluations (like EOS’s 5-5-5 framework) and scorecards to maintain clarity and focus.They also tackle common pitfalls, such as visionary leaders chasing KPIs without a clear purpose or overloading scorecards with too many metrics. From leadership-level scorecards tracking financials, sales, and customer support metrics to department-level KPIs, the hosts highlight the need for simplicity and relevance. Tune in for actionable strategies to implement KPIs effectively, avoid “chasing the same hamster around the wheel,” and commit to an operating system that transforms your business. Visit gapanalyzer.com for tools mentioned in the episode, and join us next week for more operations expertise! Minute by Minute:

0:00 Introduction

2:29 Starting with job descriptions

5:40 Are you gonna keep it on a scorecard?

8:56 What are the key factors behind KPIs?

13:16 What KPI’s should end up on a score card

20:55 Bonuses tied to completing rocks