Key Performance Indicators Jean Roberson jqroberson@gmail.com

Key Performance Indicators KPIs evaluate the success of an organization or of a particular activity in which it engages. Often success is simply the repeated, periodic achievement of some levels of operational goal (e.g. zero defects, 10/10 customer satisfaction, etc.), and sometimes success is defined in terms of making progress toward strategic goals

Key Performance Indicators Quantitative indicators that can be presented with a number. Qualitative indicators that can't be presented as a number. Leading indicators that can predict the outcome of a process Lagging indicators that present the success or failure post hoc Input indicators that measure the amount of resources consumed during the generation of the outcome Process indicators that represent the efficiency or the productivity of the process Output indicators that reflect the outcome or results of the process activities Practical indicators that interface with existing company processes. Directional indicators specifying whether or not an organization is getting better. Actionable indicators are sufficiently in an organization's control to effect change. Financial indicators used in performance measurement and when looking at an operating index.

What really matters?? Revenue and Sales Metrics Historical Performance “If you don’t have revenue you are not an entrepreneur” Revenue and Sales Metrics Historical Performance Contracts Revenue Customers Monthly recurring revenue (MRR) Annual recurring revenue (ARR) Revenue per customer Lifetime Value (LTV) Churn

What really matters?? Revenue and Sales Metrics Predictive “If you don’t have revenue you are not an entrepreneur” Revenue and Sales Metrics Predictive Marketing Qualified Leads(MQL) Sales Qualified Leads(MQL) Trials Conversion Rates Pipeline Churn Month over month growth Increased or decreased revenue per customer

What really matters?? Revenue and Sales Metrics Customer Health “If you don’t have revenue you are not an entrepreneur” Revenue and Sales Metrics Customer Health Trouble tickets Time to response Customer satisfaction Returns Renewals Cancellations Product usage or activity

What really matters?? Financial “Never run out of cash” Financial Burn Rate – how much cash are you burning each month – cash from customers less cash expenses Months of burn – how many months before you run out of cash? Revenue Growth rates Market share Margin Cash flow breakeven – when do you stop burning cash?

What really matters?? Product Milestones Achieved Product Roadmap “Don’t let great get in the way of good” Product Milestones Achieved Product Roadmap Release Schedule Minimal Viable Product (MVP) Customer input What will customers pay? How much will it cost to produce?

How to present?? “Don’t let great get in the way of good”

* * * = Projections

2017 Budget to Actual Revenue Drivers

2017 Budget Cost Drivers

Key Metrics – MRR – Customers – Cash Burn 2017* 2016* Q1 16 Q2 16 Q3 16* Q4 16* MRR (000’s) 360 440 500 650 New MRR (000’s) 60 90 150 % Growth in MRR 17% 23% 10% 32% MRR Churn (0%) (2%) Enterprise Customers 50 59 64 80 Average MRR/Customer 7330 7450 7500 8000 Net Cash Burn (220) (100) (200) *= Projections, Contracts are billed annually in advance