Highlights from "The Two Big Problems in Business + KPIs for Growth"

"What Gets Measured Gets Managed" - Why KPIs Matter

• The Two Problems in Business:
  1. Visibility: Unlike sports, business doesn’t have a clear “scoreboard” that tells us if we’re winning. Without clarity, we rely on luck and hope.
  2. Programming: Sports use structured, incremental training cycles to achieve outcomes, but businesses often set vague goals without clear, measurable progress steps.
• The Solution: Focus on Key Performance Indicators (KPIs) to create clarity, measure progress, and ensure you’re moving the needle where it matters most.

The 3 KPIs Every Business Needs for Hiring Success:

1. KPI 1 – First Interaction:
   • The moment someone engages with your company (e.g., applies for a job, shows up for an interview).
   • Think of it as the “handshake.”
2. KPI 2 – Transactional Commitment:
   • The moment something tangible happens—an interview, a job offer, or a formal interaction that brings them closer to joining.
3. KPI 3 – Realized Value:
   • When the employee feels they’ve made the right decision. They’re fully bought in, engaged, and ready to stay long-term.
   • This could happen before they accept the job (e.g., through strong employer branding) or weeks into their onboarding/training.

Your Business’s “Growth Engine” – Finding and Fixing Gaps

• Think of your hiring process as a sports scoreboard—every KPI is a point on the game plan.

• Identify Friction Points:
  • Are candidates dropping off between KPI 1 and KPI 2? (e.g., many applications but low interview attendance?)
  • Are they leaving before they reach KPI 3 (realized value)?
• Solve for the Gaps:
  • Example: If candidates are ghosting after offers, strengthen your pre-hire engagement (e.g., personalized follow-ups, branded swag).
  • If retention is low, identify what’s missing during training or onboarding that prevents employees from “buying in.”

Real-Life Examples:

1. Organize It’s Success Story:
   • Challenge: High apply rates but low show rates for interviews.
   • Solution: Added pre-interview engagement tools like swag, personalized water bottles, and better follow-up processes.
2. "KPI 3 Before KPI 2" Example:
   • A candidate who was fully committed to joining before their interview because of strong employer branding on social media and a positive reputation.
   • Key takeaway: Your employer brand can create buy-in even before formal engagement.

Action Plan for Growth

1. Define Your KPIs:
   • Identify your company’s unique KPI 1, 2, and 3 based on your hiring process.
   • Ask: Where are the biggest drop-offs?
2. Track Weekly/Monthly Data:
   • Use a growth scorecard (separate from your business health metrics) to measure applies, interviews, and realized value outcomes.
3. Focus on One Fix at a Time:
   • You can’t fix all friction points at once. Focus on one KPI (e.g., increase interview attendance before tackling retention).
4. Reevaluate Monthly:
   • Adjust based on trends. Are you seeing improvement in your hiring “scoreboard”?

Key Takeaways

• Growth isn’t just revenue—it's about creating systems that remove friction and drive progress.
• Every hire needs to flow smoothly through KPI 1 → KPI 2 → KPI 3.
• When in doubt, ask where your biggest gaps are and focus all your energy on fixing that one area.

What Will You Change? What’s your biggest friction point between your KPIs? What’s one thing you’ll go back and change today? Share your ideas in the chat or Facebook group!