Are your C-suite metrics ignoring what customers really want?

Hey folks,

In this newsletter, we're tackling a crucial question: As your C-suite focuses on their core KPIs, are they ignoring what customers really want? 

I'm also excited to share news about the launch of our Certified Training Partner program from Sense & Respond Learning. First offerings out of the gate are six workshops on product discovery, collaboration and Lean UX in locations all over the world. More info below. 

Plus, I've got a couple of blog posts for you: one on my summer adventures and another on how I structure OKR training for maximum impact.

Let's dive in and explore how to make your metrics work harder for both your company and your customers!

- Jeff

P.S. Don't miss our free, upcoming webinar on planning with OKRs. This is the first in a series of free webinars exploring the various applications and challenges around objectives and key results that Josh Seiden and I are putting on this fall.

Article: Why your C-suite KPIs might be missing the mark on customer value

Imagine your business is a car. Your KPIs are the dashboard, but you're so focused on the speedometer that you've missed the check engine light. That's the risk many C-suite executives face when they fixate solely on traditional metrics like revenue, profit margins, and market share. These financial indicators are crucial, no doubt, but they're also lagging indicators that don't capture the full picture of customer value. If we're not careful, our relentless pursuit of these KPIs can actually undermine the very customer behaviors that drive our long-term success.

Let's take airlines as an example. In an effort to control costs and boost profits, many airlines have cut amenities, shrunk seats, and added fees for everything from checked bags to seat selection. On paper, these moves look great for the bottom line. But what's really happening?

Customers, feeling squeezed (literally and figuratively), start finding workarounds. They cram oversized bags into overhead bins, sneak food and drinks onto planes, and generally become more stressed and unruly. The result? Longer boarding times, flight delays, and increased operational costs that eat into those hard-won profits.

This disconnect between financial KPIs and customer value isn't unique to airlines. It's a challenge across industries, and it stems from a fundamental misunderstanding of how customer behavior drives business results.

To bridge this gap, we need to shift our focus. Yes, revenue and profit matter, but they're the result of customer behavior, not the cause. Instead of fixating solely on financial metrics, we need to ask:

1. What are our customers doing (or not doing) today?

2. What’s stopping them from being more successful and/or satisfied?

3. How might we deliver more/better/different value to drive the behaviors we want to see?

This approach requires a delicate balance. We can't ignore financial realities, but we also can't afford to sacrifice customer value in pursuit of short-term gains. Instead, we need to find creative ways to align customer needs with business goals.

For airlines, this might mean offering free seat selection to reduce boarding stress, creating family ticket bundles to encourage group travel, or providing resident discounts to build loyalty on specific routes. These initiatives might seem counterintuitive from a pure cost-cutting perspective, but they can drive behaviors that ultimately benefit both customers and the bottom line.

The key is to recognize that customer behavior is the bridge between the value we provide (aka the stuff we make) and the financial results we seek. By understanding and influencing that behavior, we can create a virtuous cycle where increased customer value leads to improved business performance.

So, the next time you're reviewing your KPIs, ask yourself: Are we measuring what really matters to our customers? Are we tracking the behaviors that drive our success? And most importantly, are we delivering the kind of value that will keep our customers coming back for more?

Intrigued? We wrote an entire (short) book on how to define these customer-centric goals. You should get your copy here. 

What’s new on the blog

What I did this summer and what’s coming up this fall - I've had an incredible summer full of travel, music, and family experiences, and now I'm gearing up for an exciting (read: busy) fall season. If you're into product management, OKRs, or product discovery, you might want to keep an eye on what I've got planned for the coming months.

How I structure OKR training for maximum impact - I've been busy training teams and leaders on implementing OKRs at scale, and with my new book out, things are only ramping up. I've developed a structured approach to OKR training that's been consistently effective, and I thought it might be helpful to share how I do it. Want to know the key elements that make this training so impactful? Let's dive in.