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"Are you measuring your weekly growth?" No, and for very good reason. For pete's sake, you should not be measuring your growth numerically and targeting it week
by calinet6 14y ago
"Are you measuring your weekly growth?" No, and for very good reason. For pete's sake, you should not be measuring your growth numerically and targeting it weekly. This is not what Paul meant, and I don't think it's what he would recommend.
Growth happens on a larger and more complex scale than a weekly sum. Furthermore, if you're expecting your actions for any given week to correlate directly with growth that happens that week, you're doing it wrong.
Do you need to work hard? Of course. Should you procrastinate? Of course not. Is the key to this tracking your weekly growth. No! You risk misdirecting your efforts, becoming far too short-sighted, and falling into the dangerous trap of running your company only on those quantifiable and measurable numbers. You risk missing the complexity which results in growth, and instead narrowing your focus to the point where it actually stagnates growth or produces the wrong kind of growth.
See W. Edwards Deming's management treatise that helped bring Japan out of a recession—http://en.wikipedia.org/wiki/W._Edwards_Deming#Key_principles http://en.wikipedia.org/wiki/W._Edwards_Deming#Key_principle... - one of his recommendations was to "Eliminate management by objective. Eliminate management by numbers and numerical goals. Instead substitute with leadership." And a pitfall he pointed out—"Running a company on visible figures alone." More can be found in his books, which mostly are targeted toward manufacturing but I find apply incredibly well to software business.
Please, don't limit yourself to this sort of narrow-minded analysis of your business, or at least be very aware of the consequences and consider it only as an interesting result, never use it as a target or benchmark, and especially don't use it to try to motivate or pressure your employees. Your results will slowly shift toward optimizing your measured goal alone, and your company will become as narrow and pointless as the number.
Can this metric be used? Of course. You can look back on your efforts over the long (or short) term, and if you see a decent 6% growth rate, great. If you don't, then you may need to change something. But you have to understand it intimately; that it's not a goal, not a target, but a simple metric to be used post-facto to make useful and realistic changes to your strategy. I'm not warning you against using all numeric analysis, but I am warning against using it as a true goal or target. Just keep it in perspective, and I fear a web site that makes the metric as clear and visible as this site does brings it far too close to the front of your daily attention than it should be.
Growth comes from many complex sources, toward many time frames and overarching goals; and the target is not a weekly number, but instead, a growing and sustainable company. Work toward that.
- zalew 14y ago> you should not be measuring your growth numerically so... how should you measure without numbers?
- calinet6 14y agoAh, context: "you should not be measuring your growth numerically and targeting it weekly." My point is not that the measurement is numeric (of course whether it's numeric or not is irrelevant); it is that using a sum number on a weekly scale can limit your view, narrow your goals, and have the opposite of the intended effect.
- zalew 14y ago> This is not what Paul meant, and I don't think it's what he would recommend. "During Y Combinator we measure growth rate per week, partly because there is so little time before Demo Day, and partly because startups early on need frequent feedback from their users to tweak what they're doing. [..] This is, obviously, only for startups that have already launched or can launch during YC. A startup building a new database will probably not do that. On the other hand, launching something small and then using growth rate as evolutionary pressure is such a valuable technique that any company that could start this way probably should. " "using growth rate as evolutionary pressure is such a valuable technique that any company that could start this way probably should." -> that looks like exactly what the 6% check is for - a simple tool to keep you motivated, not to rely your whole strategy upon.
- c1sc0 14y agoPG: We usually advise startups to pick a growth rate they think they can hit, and then just try to hit it every week. The key word here is "just." If they decide to grow at 7% a week and they hit that number, they're successful for that week. There's nothing more they need to do. But if they don't hit it, they've failed in the only thing that mattered, and should be correspondingly alarmed. </unquote> Maybe the caveat should be: "If you want to play the high-growth startup game". Measuring weekly growth apparently is a tool that works in that context.