In this episode of The Growth System, Colin and Chris delve into the significance of metrics and measurables in B2B growth, exploring how they link to strategy and purpose. They discuss the role of metrics as system drivers, caution against the misleading nature of data, and highlight the pitfalls of relying on metrics like MQLs. The conversation emphasizes the importance of a balanced measurement strategy that includes leading, lagging, and lurking indicators, and warns of the reinforcing loops that can arise from poorly defined metrics.
In this conversation, Chris and Colin explore the complexities of metric selection and its impact on organizational behavior. They discuss the importance of understanding both positive and negative spirals that metrics can create, the interplay between different metrics, and the significance of data transparency. They emphasize the need for narratives behind metrics to provide context and meaning, and how defining success through metrics can shape organizational performance. The discussion highlights the potential pitfalls of relying solely on metrics without considering their broader implications.
00:00 Introduction to Metrics and Measurables
01:09 Linking Strategy to Metrics
03:43 The Role of Metrics in Purpose
05:35 Metrics as System Drivers
10:41 Cautionary Tales: The Wells Fargo Example
11:59 The Misleading Nature of Data
17:39 The Problem with MQLs
19:32 Leading, Lagging, and Lurking Indicators
23:18 The Importance of a Balanced Measurement Strategy
27:06 Reinforcing Loops in Metrics
29:36 System Failures and Metric Selection
32:13 Positive and Negative Spirals in Metrics
36:08 The Interplay of Metrics and Organizational Behavior
40:38 Nonlinear Effects of Metrics on Brand and Morale
43:36 The Importance of Data Transparency
50:25 Narratives Behind Metrics
55:01 Defining Success Through Metrics