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In a high-growth company, strong overall revenue and net retention can hide a weakening top-of-funnel. Leaders should obsess over leading indicators like new logo pipeline generation and close rates, as a decline in these metrics is an early warning of future growth deceleration.

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A more accurate measurement system can be intimidating because it reveals uncomfortable truths. It may show that seemingly successful activities, like generating high MQL volume, had a negligible impact on actual pipeline. Leaders must prepare to face this exposure to truly improve performance.

Board reports often highlight positive top-line growth (e.g., "deals are up 25%") while ignoring underlying process flaws. This "fluff" reporting hides massive inefficiencies, like an abysmal lead-to-deal conversion rate, preventing the business from addressing the root causes of waste and suboptimal performance.

Vanity metrics like total revenue can be misleading. A startup might acquire many low-priced, low-usage customers without solving a core problem. Deep, consistent user engagement statistics are a much stronger indicator of genuine, 'found' demand than top-line numbers alone.

A key differentiator for companies that scale successfully is their focus. Failing companies obsess over and incentivize leading indicators like MQL volume. Successful ones use them only as directional guides while remaining fixated on lagging indicators like revenue.

When growth stalls, blaming a broad area like 'sales' is ineffective. A simple weekly scorecard forces founders to drill down into specific metrics like lead volume vs. conversion rate. This pinpoints the actual operational drag, turning a large, unsolvable problem into a focused, actionable one.

Top-performing companies are abandoning traditional metrics like MQLs. They now focus on understanding the entire prospecting process—from lead creation to BDR/SDR engagement—to generate stronger pipeline, higher win rates, and more revenue with less wasted effort.

Everyone obsesses over Net Revenue Retention (NRR), but Gross Revenue Retention (GRR) is the real indicator of product health. GRR tells you if customers like your product enough to stay, period. A low GRR signals a core problem that expansion revenue in NRR might be masking.

Focus on retaining and expanding existing customer revenue (NRR) over acquiring new logos. An NRR above 120% creates compounding growth, while below 75% signals the business is dying. This metric is a truer indicator of company health than top-line growth alone.

For stalled growth, ask these questions in order: 1) Are customers leaving? 2) Is pricing correct? 3) Are existing customers growing? 4) Are acquisition channels saturated? 5) Do you *need* to grow? This sequence ensures you fix foundational issues before addressing symptoms.

Use L1 metrics (lagging indicators like pipeline generated) to identify problems. Then, review a prioritized list of L2 metrics (leading indicators like sequence reply rates) to find the cause. Crucially, stop and fix the *first* L2 metric that is off-target, rather than analyzing all of them, to apply the most effective fix.