TLDR: 4DX = 1) Focus, 2) Leading Indicators, 3) Scorecard, 4) Accountability
Every once in a while a book or concept permeates a corporate fabric.
My favorite example might be “Communicating with Executives,” or formerly and more affectionately referred to as “Does it matter, and how’s it going?”
This talk was originally given by Dan Shapero, the COO of LinkedIn, back in 2015 to a group of leaders within the company. So many talented people spoke so highly of it that even though I wasn’t in the room for the original talk, I had to ask him to come share the talk with our key accounts organization in 2018.
We recorded it, and again it went viral.
I still teach the framework to founders and salespeople today to help them frame their narrative to investors or structure their conversations when they’re in the room with their first customers.
I linked the course above, so I will let you watch it there rather than trying to recreate it here.
But I will share one more tool that I have found to be simple and effective. It’s something most of us know intuitively, but I’ve found that even with the best intentions, these routines that drive focus can often fall by the wayside in favor of chaos.
Chaos is addicting. It’s a feeling of movement and progress, but a false sense of true accomplishment.
Focus on the other hand is where real speed and 10X progress comes from. To drive that kind of focus and compound returns, I’ve often referred back to The Four Disciplines of Execution or 4DX for short.
The Four Disciplines of Execution (4DX):
Focus on the Wildly Important
Act on Leading Measures
Keep a Compelling Scoreboard
Create a Cadence of Accountability
As simple as it is, when you agree on what is important, organize effort around the key input or leading measure that drives the outcomes you want, track that activity and its impact in a scorecard, and consistently communicate it, the result is team alignment and a force multiplier on your effort.
For example, you might decide that survival and raising capital for your startup is the key priority.
Wildly Important: Survival
Lead Measures: New Customer Meetings & New VC Meetings
Scorecard:
Customer Pipeline (# of new meetings)
VC Pipeline (# of new meetings)
Revenue & Growth ($$’s & %)
Cadence: Weekly email to team & investors
In order to survive as a startup, you need to be growing and growing fast.
The leading indicator on growth is new customer meetings. Filling the funnel with new customer meetings will eventually lead to new customers and new revenue. New revenue and compounding growth will make it easier to fundraise.
In a team of two, one person focuses on building and the other on selling. If you’re solo, you do both.
Your weekly email cadence might look something like this:
Hey all, we are focused on growth as we progress toward our next round of funding. We’re on track, growing 20% m/m, and are on pace to achieve $1m+ in revenue this year.
This week’s update:
10 new customer meetings (35 logos, $1.3m pipeline, +20% w/w)
12 new investor meetings (6 funds in diligence, +2 w/w)
$420K ARR (+20% m/m), we closed XYZ Co. last week
Special thanks to X & Y who made great customer and investor introductions last week. Looking forward to another big week.
The measurement, reporting, and communication of the results is what will drive the right behaviors and create accountability for yourself and others. This becomes even more impactful as teams grow larger and more leverage is created.
See more on 4DX here. Don’t forget to watch Communicating with Executives here.
See you Monday.