Metrics That Matter in Scaling Up Your Business

“What gets measured gets managed — but only if you’re measuring what truly matters.”

Scaling up a business isn’t just about ambition — it’s about focus.
Many leaders track dozens of numbers, dashboards, and KPIs, yet still feel unclear about performance.

The truth?
You don’t need more metrics. You need the right ones — the few that actually drive growth, profitability, and sustainability.

In Scaling Up, Verne Harnish breaks business performance into four key areas: People, Strategy, Execution, and Cash.

Here’s how to measure what matters most in each.

1. People Metrics — Build the Team That Builds the Business

Your team is your ultimate growth multiplier. Without the right people, no strategy will stick.

Metric #1: Percentage of A Players

Strive to have the majority of your team made up of A Players — people who embody your core values and consistently deliver results.

A strong percentage of A Players means fewer management headaches and better execution.

Why it matters: A high-performing team compounds productivity — and creates the cultural tone that attracts more A Players.

Metric #2: Employee Turnover Rate

Turnover is a silent profit killer.

Calculate it by dividing the number of employees who left during a given period by the number of employees at the start of that period.
Example: 10 leavers / 200 staff = 5% turnover.

Benchmark: Aim for below 10%, though it varies by industry.

 Why it matters: High turnover signals cultural or leadership issues that can block scale.

Metric #3: Employee Engagement

Engagement is the heartbeat of performance.

It measures whether people are committed, motivated, and aligned with your mission.

Ways to measure it include:

• Regular employee surveys
• Employee Net Promoter Score (eNPS)
• Pulse checks
• Exit interviews

Why it matters: Engaged employees deliver better customer experiences — which drive profit and growth.

2. Strategy Metrics — Track Progress Toward the Vision

Strategy metrics show whether your plan is working — not just whether you’re busy.

Metric #4: Key Performance Indicators (KPIs)

KPIs connect daily activity to strategic goals. Examples include:

• Sales Growth — revenue change over time.
• Margin Growth — profit per sale (critical for sustainable scaling).
• Market Share — how you’re performing in your industry.
• Customer Acquisition Rate — pace of new client growth.
• Customer Lifetime Value (CLV) — how much revenue each client generates over time.

Why it matters: KPIs translate big-picture strategy into measurable progress.

Metric #5: Customer Satisfaction & Loyalty

Loyal customers are your most powerful growth engine.

Track this with:

• Net Promoter Score (NPS) — “How likely are you to recommend us?”
• Churn Rate — % of customers leaving.
• Retention Rate — % of customers staying.

Why it matters: Retaining customers is cheaper — and more profitable — than constantly chasing new ones.

3. Execution Metrics — Measure What Gets Done (and How Fast)

Even the best strategies fail without disciplined execution.

Metric #6: Project Timelines and Milestones

Track completion rates, average time per project, and whether milestones are hit on time. 

Why it matters: Execution speed and consistency are key competitive advantages.

Metric #7: Operational Efficiency

Efficiency shows how well you convert inputs (time, labour, materials) into outputs (results, products, profit).

Examples:

• Sales per employee
• Cost per unit produced
• Inventory turnover 

Why it matters: Efficiency drives profitability — not just revenue.

4. Cash Metrics — The Oxygen of Growth

Cash is the ultimate test of scalability. Without it, growth kills.

Metric #8: Cash Conversion Cycle (CCC)

Measures how quickly you turn inventory and investments into cash.

Formula:

CCC = Days Receivable + Days Inventory – Days Payable

A shorter cycle means cash flows faster — and less external funding is needed.

 Why it matters: Companies don’t go broke because of losses — they go broke because they run out of cash.

Metric #9: Operating Cash Flow (OCF) & Free Cash Flow (FCF)

• OCF = cash from operations
• FCF = OCF – capital expenditures

Positive OCF and FCF show that your business funds growth internally.

Why it matters: Cash flow is confidence — it gives you options, not just survival.

Metric #10: Sustainable Growth Rate (SGR)

Your SGR shows whether you can fund future revenue growth without external financing.

If it’s negative, you’re “growing broke.”

Why it matters: This metric is the difference between sustainable scale and overextension.

Final Thought — Measure What Moves the Needle

Scaling a business is complex, but the metrics that matter are simple.

When you track the right indicators, you:

• Build alignment across teams.
• Catch problems early.
• Create a culture of ownership and accountability.

The magic happens when metrics turn into action — when numbers don’t just describe your business, but drive it.

Want to benchmark your company’s growth performance?
Take our Scaling Up / Four Decisions Needs Assessment to see how your business stacks up against high-performing firms.
Or email tedb@strategyandexecution.com.au for a free 30-minute discovery meeting.

TED BONEL, SCALING UP PRACTITIONER – STRATEGY & EXECUTION BUSINESS ADVISORS

Are you looking to scale your business and execute strategy with clarity and impact? I help CEOs and founders turn big ideas into real-world results, guiding small to mid-market companies through tailored strategic insights that drive growth.

My expertise lies in simplifying complexity – bridging high-level strategic frameworks with the practical realities of running a business. Unlike many consultants who focus solely on theory or execution, I specialise in both—translating strategy into actionable, transformative steps that deliver lasting results.

Want to benchmark your company’s growth performance?
Contact me at tedb@strategyandexecution.com.au to schedule a free 30-minute discovery meeting.

ABOUT STRATEGY & EXECUTION

For over 20 years, Strategy & Execution has supported leaders and organisations in developing and executing winning strategies. We provide expert facilitation, executive education, and hands-on consulting to help businesses refine their strategic direction and implement it effectively.

Using proven methodologies like Scaling Up, E-Myth Mastery, Outthinker, and more, we challenge conventional thinking and equip organisations with the tools to accelerate growth. Our approach is dynamic—combining deep business experience with practical execution. We don’t just advise; we roll up our sleeves and work alongside you to make strategy happen.

If you’re preparing for a strategy development or execution challenge and are committed to creating real value, we’d love to hear from you. Learn more about our work or upcoming workshops