Prioritize high-impact problems, simplify metrics into an intuitive dashboard, practice transparency, and pair metrics to avoid optimizing for one thing at the expense of another.
- Solve high-impact A plus problems by prioritizing them and creating tools that enable people to make decisions at the same level.
- To create scale and leverage, founders should draft and simplify the company's value proposition and metrics into an intuitive dashboard that every employee, including customer support, can use, with the key metric of success being the percentage of employees who use it daily.
- Transparency in a company involves giving everyone access to metrics, reviewing board decks with employees, creating notes for every meeting, and passing on feedback from the board.
- Square uses glass walls in conference rooms and practices minimal viable transparency, including email transparency, but transparent compensation may not be as effective.
- Transparency in compensation can work well, as seen in the sports world where all compensations are public, and measuring outputs rather than inputs is important.
- Pair metrics or indicators to avoid optimizing for one thing at the expense of another, measure both the fraud rate and false positive rate, and track the quality of hires to innovate and avoid unhappy outcomes.