Tires per hour 🛞
That was the crucial KPI for Chandos Mahon at his waste management company. He attributes half of their ~5x MOIC to this one KPI (other half = mix of quality service, pricing power, and M&A).
Tires collected per hour. Once this KPI was identified, they changed compensation plans, which in turn drove behavioral change and encouraged bottom-up operational improvements, leading to strong organic growth (volume) and productivity gains (profitability).
Boiling everything down to 1 KPI is inapplicable for most, but super powerful in certain cases: hours-sold for home service companies, RevPAR for vacation rental managers, retention rates for membership-oriented businesses.
Minds Capital Podcast every Wednesday (Spotify, YouTube, Apple Podcasts, etc.). Yesterday somebody recommended us sandwiched between Invest Like The Best and Andreesen Horowitz; not the worst company, hah.
