Performance The Numbers That Matter
Stop tracking everything. Start tracking what changes decisions.
🎯 Core Philosophy
The Reality Check: If a metric doesn't make you act differently, stop tracking it.
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📊 The Only 5 Metrics That Matter
1. Revenue Per Hour Worked (Real Rate)
Formula: Total Revenue ÷ Actual Hours Worked
- • Include ALL hours (emails at 9pm count)
- • Include unpaid admin time
- • Include "thinking about work" time
2. Days Fully Offline Per Quarter
What Counts: Complete disconnection - no email, no "quick checks"
- • Phone on airplane mode
- • Out-of-office that means it
- • Someone else handles emergencies (or they wait)
3. Client Concentration Risk
Formula: Largest Client Revenue ÷ Total Revenue
- • No single client over 30% of revenue
- • Top 3 clients under 60% combined
4. Automation Percentage
Formula: Tasks You Don't Touch ÷ Total Recurring Tasks
- • Includes fully automated processes
- • Includes delegated work (if any)
- • Excludes one-off projects
5. Energy Audit Score
Formula: Good Work Hours ÷ Total Work Hours
- • Good Work = energizing, meaningful, aligned with Persona
- • Soul-Crushing = admin, complaints, work you hate
🚨 Warning Metrics (Track Monthly, Act Immediately)
Pipeline Health
Leads in pipeline vs monthly needs
Danger Zone: Less than 3 months runwayCash Buffer
Months of expenses in bank
Danger Zone: Less than 3 monthsScope Creep Index
Actual hours vs quoted hours on projects
Danger Zone: Consistently over 120%📈 Performance Review Cadence
Weekly Check (5 minutes)
- • Hours worked this week
- • Revenue per hour quick calc
- • Energy level (1-10)
Monthly Deep Dive (30 minutes)
- • Calculate all 5 core metrics
- • Compare to previous month
- • One decision based on data
Quarterly Reset (2 hours)
- • Full performance analysis
- • Adjust targets based on Persona
- • Kill or fix underperforming areas
🎬 Action Triggers
If Revenue/Hour < $150:
- → Raise prices immediately
- → Fire worst client
- → Automate biggest time sink
If Days Off < 7/Quarter:
- → Block next month's vacation NOW
- → Set up proper out-of-office systems
- → Question if you own a business or it owns you
If Client Concentration > 40%:
- → Diversification becomes priority #1
- → No new work from that client
- → Find 3 new revenue sources this quarter
If Automation < 40%:
- → Document top 3 repetitive tasks this week
- → Pick one to eliminate or automate
- → Stop doing everything manually
If Energy Score < 50%:
- → List everything you hate doing
- → Eliminate, automate, or delegate within 30 days
- → Seriously consider business model change
💀 Vanity Metrics to Ignore
Stop Tracking:
- ✗ Email subscribers (unless they buy)
- ✗ Social media followers
- ✗ Website traffic
- ✗ "Reach" or "impressions"
- ✗ Number of products/services offered
- ✗ Total revenue without time context
Why: They feel good but don't drive decisions
🎯 The Ultimate Performance Test
Can you answer these instantly?
- 1 What's your real hourly rate?
- 2 When was your last full week off?
- 3 What would happen if your biggest client left tomorrow?
- 4 What percentage of your work could run without you?
- 5 Are you doing work that matters to you?
If you hesitated on any: Your performance tracking needs work
🔧 Quick Implementation
Week 1: Baseline
- • Track every hour worked for one week
- • Calculate current revenue per hour
- • Note energy levels daily
Week 2: Reality Check
- • Calculate all 5 metrics honestly
- • No lying to yourself about hours
- • Include that Sunday email session
Week 3: First Changes
- • Pick worst metric
- • Make ONE change to improve it
- • Set calendar reminder for monthly review
Week 4: Systems
- • Set up simple tracking spreadsheet
- • Automate data collection where possible
- • Schedule quarterly performance reviews
🚀 The 90-Day Performance Transformation
Success: When checking metrics takes 5 minutes and drives immediate action
🎪 The Bottom Line
Performance metrics aren't about impressing anyone. They're about ensuring your business serves your life, not the other way around.
The Only Question That Matters: "Is this business giving me the life I want, or am I sacrificing my life for this business?"
Your metrics should answer that question instantly.
Remember: A business that requires you to work 60 hours a week isn't a business - it's a self-imposed prison with crap benefits. Track what matters. Ignore what doesn't. Use data to buy back your life.
"If you can't take a week off without the business collapsing, you don't have a business - you have an expensive job with a terrible boss (yourself)."