SaaS Metrics Maturity Model - Part 2

with the Metrics Brothers

Dave "CAC" Kellogg and Ray "Growth" Rike continue their discussion on the SaaS Metrics Maturity Model which includes the below five levels:

Level 1: Foundation
Level 2: Trust
Level 3: Strategic Linkage
Level 4: Metrics Culture
Level 5: Trajectory

Level 1: Lay the foundation

Definitions and calculations
Pipeline stages, forecast categories, close dates, values, SaaS metrics
Semantics - what do words like best case, forecast, commit and downside mean
Instrument underlying systems (GL, CRM, Billing, HCM, etc)
Consider Metrics Committee

Level 2: Build trust

Templates, templates, templates
Metrics selection & presentation
History & context - always include footnotes on how metrics are calculated
Regular Cadence: which templates used at which meetings?
Continuous improvement - fix data at the source, improve templates

Level 3: Link Metrics to Business Strategy

Identify your top challenges
Define 4-6 strategic goals - align metrics to those goals
Link department, team and individual objectives to the company metrics (OKRs)

Level 4: Build a metrics culture

Demand numeracy
Manage to the regular metrics publishing cadence
Metrics conversations about the business impact NOT the metric calculation method

Level 5: Agree on strategic trajectory

Long-range, driver-based models
Timeframe: When are metrics goals targeted to be achieved, what are the milestones towards goal
Sequencing: Not everything at once - what is the priority order and associated timeframe for each metric's goal

If you are a creator, user or participant in how your company uses metrics to measure performance, inform decision making and/or report performance to your boss, your board and your investors this conversation will be valuable!!!