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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!!!

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