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ESADE Business School Commencement Speech

Steve Blank

Just look at the disruptive challenges that businesses face today– globalization, China as a manufacturer, China as a consumer, the Internet, and a steady stream of new startups. Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO.

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Why Companies are Not Startups

Steve Blank

Facing continuous disruption from globalization, China, the Internet, the diminished power of brands, changing workforce, etc., They measure their success on metrics that reflect success in execution, and they reward execution. These metrics stack the deck against a company that wants to invest in long-term innovation.).

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Benchmarking Performance: Your Options, Dos, Don'ts and To-Die-Fors!

Occam's Razor

Leaders (company is leaving China, our IPO is next week, 1,800 new stores are being opened in 180 days, our new IRR is 8%). Conversion rate is one of those metrics that I strongly encourage you only create benchmarks for from your own data. You have the standard metrics like Time on Site, Pages/Visit and Bounce Rate.

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High Returns On A Small Fund Challenge Low Returns On A Big Fund

David Teten

The Kauffman Foundation points out several reasons why they choose to keep pouring capital into the industry: the J-curve narrative, VC investment allocation mandates (which should disproportionally benefit large funds), the “relationship business” philosophy, and potentially misleading return metrics (such as IRR).

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On the Road to Recap:

abovethecrowd.com

The same thing happened to many Internet stocks. Anything that hints of a down round brings questions about the success metrics that have already been “booked.” Do you feel the need to raise more capital quickly before the prices erode further and bring down your IRR? Late 2015 also brought the arrival of “mutual fund markdowns.”

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