BoSUSA24 | Matt Lerner | Goals, Metrics and Incentives

Do your teams move in one direction? Single founders struggle to focus on the right things. More people, teams and departments mean exponential complexity.

The truth. A single goal and focusing resources on achieving it is the only way to maximise outcomes.

In this interactive session, Matt takes you through the process of finding, stress-testing and implementing a single North Star Metric to help you align goals, behaviours and incentives across your company. You will learn how to identify your rate-limiting step, the bottleneck where you need to focus to have the biggest impact on your growth. He’ll discuss how to implement your framework across your team so that people are aligned and making good decisions about how to spend time and money.

1. 27 MARCH, 2023 HOW TO FOCUS TEAMS ON THE MOST IMPACTFUL WORK MATT LERNER, FOUNDER SYSTM

2. AN OLD PAYPAL WAR STORY *All numbers are fictitous and illustrative, but directionally accurate

3. PARETO DISTIBUTION *All numbers are fictitous and illustrative, but directionally accurate

4. RESULTS *All numbers are fictitious and illustrative, but directionally accurate

5. RESULTS *All numbers are fictitious and illustrative, but directionally accurate

6. Work ≠ Growth

7. How to focus your teams on the most impactful work?

8. “Show me the incentives and I’ll show you the outcome” Charlie Munger

9. 1 Find your north star FEWER BIGGER THINGS 2 Find your big levers 3 Drive the mindset change

10. YOUR NORTH STAR 01

11. Your North Star Metric

12. How investors think companies grow WORK WORK REVENUE CUSTOMER VALUE REVENUE How companies actually grow

13. HOW DO YOU MEASURE VALUE DELIVERED ?

14. “People don't simply buy products or services; they pull them into their lives to make progress”

15. What measurable behaviour is the closest proxy for value delivery?

16. EXAMPLES META Daily active users AMAZON Repeat purchases SPOTIFY Time spent listening SLACK Daily active users (DAUs) SALESFORCE Records created HUBSPOT Weekly active teams B2C B2B MARKETPLACE AIRBNB Nights booked EBAY Gross Merchandise Volume UBER Rides per week

17. Total Payment Volume Repeat Purchases Daily Active Users Ubiquity Preference Price Selection Convenience DAUs by Product Registered Users Frequency NORTH STAR Key drivers

18. 1 Find your north star FEWER BIGGER THINGS 2 Find your big levers 3 Drive the mindset change

19. YOUR Big LEVERS 02

20. Share your North Star with your whole team.

21. Share your North Star with your whole team. Ask each person how their work drives the North Star.

22. Share your North Star with your whole team. Ask each person how their work drives the North Star. Ask which work could have the biggest impact on the North Star

23. “If this works, how big can it be?”

24. Share your North Star with your whole team. Ask each person how their work drives the North Star. Ask which work could have the biggest impact on the North Star Commit to those big levers.

25. 1 Find your north star FEWER BIGGER THINGS 2 Find your big levers 3 Drive the mindset change

26. DRIVE MINDSET CHANGE 03

27. Often good ideas sound bad.

28. 1 Make a not doing list MINDSET CHANGE

29. “Sevens kill companies.” Sarah Tavel, Benchmark Capital

30. 1 Make a not doing list MINDSET CHANGE 2 Model the behaviour 3 Ask the right question

31. “What’s important and how’s it going?”

32. 1 Find your north star FEWER BIGGER THINGS 2 Find your big levers 3 Drive the mindset change