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Perspectives December 16, 2011

Forbes / Is your team in the zone?

5 Ways a CEO Can Know

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After years of leading teams and then, at Greylock, watching some of the best startup CEOs in the world, I’ve learned that the most important metrics are often ones you never read about on the income statement or in the financial press.

“If you can measure it, you can manage it” is a business saying that goes way back. Maybe it was Henry Ford who said that, or Peter Drucker? Regardless, most managers only measure outputs, not inputs, which is like telling a Little League team to score more runs, rather than actually explaining how to swing a bat and make contact with the ball. Similarly, most companies measure traffic, revenue or earnings, without considering how to improve the company at an atomic level: how to make a meeting better, or an engineer more productive. Read more on Forbes.

“Most managers only measure outputs, not inputs, which is like telling a Little League team to score more runs, rather than actually explaining how to swing a bat and make contact with the ball.”