Performance Management 2.0

Performance Management 2.0

Time is our most important, non-renewable resource...I’ve spoken with hundreds of SaaS leaders over the past 2 years, and almost everyone can agree on that.

And yet, one of the most consistent questions I hear when speaking to those same leaders:?

“Where the hell is my team’s time going?”

How can such a key input to business success be so poorly managed??

The problem is that SaaS ops has become increasingly complex. On average, teams use 50-70 SaaS tools - the typical employee manages countless projects, and must make dozens of prioritization decisions throughout each day…Remembering where your own time is going is tough enough. Understanding where your team of 10, 100, or 1k+ employees is spending their time across a month is an impossible task.

Performance Management 1.0

Most GTM leaders track lagging KPI (ex: NRR, Retention, Top-line revenue growth) and whatever inputs they can get their hands on (ex: call volume, emails, meetings)...

Unfortunately, existing reporting generally captures ~30% of your team’s time. The bulk of your team’s effort is not spent on predefined, easily logged activities, but on messy, unplanned, reactive work that gets in the way of their goals.

So when your 50-person org misses their NRR goals, you can look at how many calls or emails or qbr’s they’re doing…but beyond that you’d need to talk to 50 different employees to get their anecdotes as to why things are not working.?

And when your CEO asks why the team is missing their goals, you’re often stuck presenting opinions and stories vs facts and hard data…

Management reporting has not caught up with the increasing complexity of your team’s job.

To make things worse, most orgs have made a drastic shift from “growth at all costs” to “profitable growth” which means you’re likely trying to do the same work as you were a year ago, but with a fraction of the resources.

As a result, leaders are struggling to manage downwards and upwards…

Performance Management 2.0

In the past 6 months I’ve been fortunate to work with 20+ SaaS companies to develop a new way of performance management.?

My last company - Sense360 - was built on the thesis that passive data could be used to improve market research.?

Piggy-backing on those learnings, Lumopath was built on the premise that passive data could be used to improve organizational performance management.?

Our hope when we started Lumopath was that if we could harness the digital exhaust generated from each company's unique tech stack, we could better understand exactly where time is going, and how that time is impacting KPIs.

We wanted to make this simple.

No need to ask your team to change processes or “log” activities.?

No need to implement painful “time-tracking studies.”?

No need to spend thousands of hours of resources to try and extract this info on your own.?

We wanted something you could spin up in minutes and immediately impact change.

If your team was missing their NRR goal you could get the detail you needed to understand why. Is it because “they're spending too much time on low ARR clients” or “not enough time enabling clients during the onboarding phase” or “are CSMs taking on reactive support tasks instead of proactive revenue driving activity?”

There’s always an answer hidden in the data - you just haven't been able to access it til now.

I believe everyone can be a better leader if they get a grasp of their #1 investment (time), and that is what I’m so excited to unlock for leaders with Performance Management 2.0.

What’s next

Whether it be with Emily Campos , Brian Hansen , Russ Danford or the rest of our amazing partners, we’ve been working tirelessly with early adopters.?

They have become better managers - empowering their teams to improve prioritization, time management and outcomes.?

They’ve also become better leaders - communicating needs and tradeoffs to their C-Suite with confidence and data to back it up.?

2024 was a year of foundation building.?

2025 is the year of evangelism….I’m excited to share what we’ve built with you. I’ll be posting demos, customer stories, and thought leadership in the coming weeks and months.

If you’re interested in learning more about performance management 2.0 please don’t hesitate to ping me any time. I’m always interested to learn and to teach on the topic.

Jake Nystrom

Insurance Advisor for Cyber + Tech EO | Cover Your SaaS

1 个月

so this is looking at activity logs and usage data within the applications to see where time is being spent?

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