Do Good Work

In this episode, I discuss the core desire of business clients to feel in control and organized in their ventures and the importance of metrics in channeling focus and energy towards productive actions. I introduced the concept of 'building a system' through 5 fundamental control knobs: metric, habit, process, data sources, and ownership. This method empowers business owners to effectively measure, adjust, and fine-tune their business processes, thereby fostering growth and stability.

00:49 The Importance of Metrics and Measurement
02:40 Building Effective Systems: The Five Fundamental Knobs
04:50 Becoming an Orchestrator: Mastering Business Cadence
05:36 Channeling Energy for Business Success

Connect with Raul: 
• Work with Raul: https://dogoodwork.io
• Free Growth Resources: https://dogoodwork.io/resources
• Connect with Raul on LinkedIn (DMs open): https://www.linkedin.com/in/dogoodwork/ 


What is Do Good Work?

Do Good Work is not a label but a way of living.

It is the constant and diligent effort to achieve a new level of excellence in one’s own life.

It is the hidden inner beauty behind the struggle to achieve excellence.

It is not perfect but imperfect.

It is the effort, discipline and focus that often goes unnoticed.

The goal of this podcast is to highlight that drive.

The guests I have on this show emulate this drive in their own special way. You’ll be able to apply new ideas into your own life by learning from them.

We will also have 1on1 episodes with me where we’ll dive into my own experiences with entrepreneurship and leadership.

Every episode is designed to provide you with ideas that you can apply and grow in excellence in all areas of your life, business and career.

Do Good Work,

Raul

INTRO

PODCAST

When I begin working with clients, nearly
all of my clients tell me that they

wanna feel in control of their business.

Now, they don't say that verbatim.

They use phrases like, I want to
be organized, or I want to build

systems, and I want to scale.

And when I hear that, I
know what they're saying.

So the translation for what I 'cause,
having done that and knowing like

I know what they're talking about.

So the translation is.

I wanna feel certain that the
activities I'm taking today in my

business will bear fruit in the
future and help me reach my goals.

That's what they're saying.

They're not saying it verbatim like
that, but just being in their shoes,

uh, building companies and seeing like
the, the frustrations and the, the

things that you face, you naturally
face when you're growing a business.

Uh, it's not a smooth ride, as you know.

Uh, like that's what they're,
that's what they're seeking.

So control.

Therefore, and actually
begins with what you measure.

Now, I'm very grateful that I've never
had a report to an external board or a

group of investors to run my company.

Now, never say never, but like
thankfully, that's where I'm at right now.

Um, I've always had a force, myself
and my clients to be profitable.

Day one.

It's very important, profitable
day one, because, because of this.

Now the metrics that my clients and I
measure and the narratives we create

are radically different from those
who have to report to others because

there's no fluffing of the story.

There's either the binary or on track,
or you're off track, a point blank

reality of the health of the company.

And you know, there's no, there's no,
if there's lackluster performance,

there's no narrative to make up for that.

It either is what it is.

Either we serve clients, make a
profit, invest that profit, feed our

team, feed our families, or we don't.

And it's as simple as that,

and seeing your metrics in that
way is actually empowering.

It's liberating, really.

And here's why.

The metrics that you measure, the
purpose of measuring them is to

channel your and your team's energy
and attention and focus into action.

To produce the results they aim
to achieve for what the purpose

of what you're measuring for.

And these can be harnessed through
the participation of the right

inputs, the right behaviors, the
right actions, and the right habits.

And that includes behaviors
and mindset, like the right

attitude to execute the habit.

And this is what we call.

Building a system, and essentially you're
measuring the vitals of the organization.

You're seeing what the weak links are,
and then you're just fine tuning the knobs

and adjusting what needs to be adjusted
in order to achieve the desired goal.

So let's talk about building the
system in the five fundamental knobs.

You control in any organization,
including your business, you can control.

The metric, the thing that you're
actually measuring, that's number one.

The metric that you're measuring
that's important to you to

improve, that you can control.

This means that it's also a leading
indicator that you can actually

control the inputs day in and day out.

The second is the habit, and the nice
thing is we always look at habits.

Everything is cyclical.

Everything works in circles
for some reason, so.

The habit of what you, your team,
or a machine is doing to execute,

to produce the metric, the outcome.

Now there are multiple habits
that you can execute to influence

one metric, so keep that in mind.

So the first thing are the things
that you're measuring, the metric, the

thing that you can actually control.

The second thing are the habits that
either you, someone else or a machine

is doing on your behalf to execute.

To, to perform, to get that metric.

And you can have multiple
habits to influence one metric.

Now the third is the process.

The how to, the, how to execute the habit,
how to build a process in the workflow.

This is your procedure.

The fourth is the data sources, your
source of truth, um, what have you to

identify how you actually performing.

Where are we actually measuring how we.

Define how do we view this measurement?

'cause there's could be so many
arguments just around like, how do

you define this thing, especially
if you're looking at attribution.

And then finally, it's the owner
who is the number one person,

not two people, not three people.

Who is the number one person who is solely
responsible for the metric, the habits,

the behaviors, and the measurement.

When you do this across the most
vital, important parts of your

business, which you know, and
like, just to be transparent,

there's usually only five max.

Like the, the what I, what I've seen in
larger organizations, like maximum like

15, like leading indicators and metrics,
but usually it's like five, maybe seven,

maybe eight, but it's not that many like
the ones that you can actually control.

'cause those inputs.

Derive the outputs, and usually we try
to calculate the output like revenue,

but revenue's a lagging indicator
to some of the inputs that you do.

But anyways, when you control.

These knobs, you become an orchestrator.

You can set the cadence
of how you measure.

You can also set the cadence of
how you deploy energy, your team's

energy, your focus, your attention
to the right realms of the business.

And when something's off track,
you're not actually guessing.

You're just looking, identifying what knob
to turn, and then you set the frequency.

What cadence do you want to measure?

Like how often do you wanna measure?

How often do you wanna report?

How often do you wanna
focus attention to this?

You also wanna do stoplight reporting.

When a metric is underperforming
overperforming or at performance, what

do you, what do you wanna do there?

How do you wanna review that?

And also the feedback loops with
your team, with the tech and making

sure that you're communicating that.

And also frequency of updates
of how you're executing.

So.

When you're orchestrating,
that's when, that's what quote

unquote building a system is.

But essentially, you can do
this by channeling your energy.

So again, the metrics that you're focusing
on, the things that matter most to you

and your business and organization are
solely there for you to channel your

energy and become an orchestrator.

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As always, it's an honor to be
a small part in your journey.

This is Raul Hernandez.

Do good work.