015 Do You Know Your Critical Number?

CEO BrainFood

01:02 – Introducing today’s topic: Do You Know Your Critical Number?

02:17 – Michael speaks to his own experience working with his CFO on his critical number

03:48 – The Mariano Rivera example

05:30 – The value of historical data

07:30 – Identifying the critical number

10:02 – Engaging your team to achieve your critical number

11:17 – The Great Game of Business

13:05 – Other strategies for engaging your people

14:00 – The importance of educating your people on the business

17:50 – Michael leaves the audience with a quote from Jack Stack

18:42 – Michael poses a self-inquiry questions to the listeners

19:17 – Michael teases the topic of the next episode of CEO Brain Food

19:46 – Where to find Michael’s Functional Team Scorecard

TWEETABLE QUOTES

“We have numbers available to us at a moment’s notice, the tip of our fingers. Numbers are everywhere, and leaders use them in tracking progress and making important decisions.” (03:37)

“With so much information, we tend to lose focus and it just is all foggy and it runs together.” (06:44)

“I like to think of the critical number as the one number that represents the important variable we have to get right in order for our organization to succeed.” (07:40)

“A great way to engage your people is to connect the data that you’ve got to a benefit such as a bonus, or some type of reward, or even equity in the form of stock and stock options.” (13:05)

“At ‘Great Game,’ the critical number is defined as an operational or financial number that represents a weakness or vulnerability that, if not addressed and corrected, will negatively impact the overall performance and long term security of the business.” (17:19)

“People support what they help create.” (17:57)

RESOURCE LINKS

Michael’s LinkedIn

Michael’s Website

The Functional Team Scorecard

Jim Collins' Website

Four Characteristics of a Strong Critical Number

BOOKS MENTIONED

Get In The Game: How To Create Rapid Financial Results And Lasting Cultural Change

The Great Game of Business, Expanded and Updated: The Only Sensible Way to Run a Company

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