Five New Management Metrics You Need To Know

James Slavet, Greylock Partners

This is a guest post from James Slavet of venture firm Greylock Partners. Slavet's investments include Coupons.com, Groupon , One Kings Lane and Redfin. Greylock Partners has invested in Facebook, LinkedIn and Pandora.



Here are five metrics that great teams should measure:

Metric 1: Flow State Percentage



Metric 2: The Anxiety-Boredom Continuum



Metric 3: Meeting Promoter Score

Most meetings suck. And they’re expensive: a one-hour meeting of six software engineers costs $1,000 at least. People who don’t have the authority to buy paperclips are allowed to call meetings every day that cost far more than that. Nobody tracks whether meetings are useful, or how they could get better. And all you have to do is ask.

In the last minute of a meeting, ask the participants to each rate from 1 to 10 how effective the meeting was, with one suggestion for making the meeting better. It can be on a scrap of paper, or a simple web form. Verne Harnish has some good ideas about running better meetings.

Metric 4: Compound Weekly Learning Rate

My three year old son just asked me what the word “expert” means. When I answered, he nodded and asked “so am I an expert about superheroes yet?” The best leaders hold on to this relentless curiosity. Joi Ito wrote recently about “neotony”, the retention of childlike attributes in adulthood. This ability to learn is like the compounding interest on an investment: after two or three years, a relentless learner stands head and shoulders above his peers. Jeff Weiner, the CEO of LinkedIn, referred me to Joi’s posting. Jeff is one of the most relentless learners I know, and this quality is an essential element of his success and the success of his teams. So try asking your team this question: how did you get 1% better this week? Did you learn something valuable from our customers, or make a change to our product that drove better results? As your team gets into a learning rhythm, you can review this as a group. 1% per week adds up.

Metric 5: Positive Feedback Ratio

You can learn as much from John Gottman as you can from John F. Kennedy about being a great communicator. Gottman, a psychologist, is the author of “Why Marriages Succeed or Fail”.

In his research, he found that marriages that succeed tend to have five times as many positive interactions as negative ones. And when a couple falls below that ratio, their relationship falls down too.

The same is true at the office, where you’re often connected for years in relationships with people who can either become wary of your criticisms or eager to give you their best effort. Catch people doing good things. Never miss a chance to say something nice, even if you feel a little silly. Then when you have feedback on areas to improve, they‘ll really listen. It may be hard to manage to the 5:1 ratio at the office, but you should be mindful of the balance.

So, there you have it, 5 metrics that will never show up in the best companies’ financial statements or a Wall Street Journal article, but are the kinds of reasons those companies succeed. Tracking these five metrics isn’t glamorous. But it’s something everyone can do. And it really works.
