8 Metrics to Evaluate Entrepreneurial and Management Skills

Over the last few weeks I have been running an interesting experiment in one of my classes. I gave each student $5 and told them to go turn it in to more. The project was evaluated on 8 variables/metrics.

8 Metrics to Evaluate Entrepreneurial and Management Skills

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  • These eight basic metrics could just as easily be applied to any team, working on any business.
  • These metrics may be hard to ascertain for some businesses, and are way too subjective in other situations;
  • Yet these metrics may well be a much better guide to starting a business than many of the more highly specialized metrics that seem to abound.

8 metrics used to evaluate entrepreneurial skills

The project was evaluated on these variables; each variable is given a range of 1-5 with the extremes being defined.

Metric 1. Internal team dynamics;

  • 1. Don’t want to do business with this team ever again … 5. Will name my kids after my business partners

Metric 2. Engage others in helping out with execution;

  • 1. Did it all ourselves … 5. An international movement came together to make it happen

Metric 3. Utilization of public and community resources (space/tools/software);

  • 1. Just used what we had … 5. Multiple community resource holders begged us to come again

Metric 4. Effectiveness of execution and repeatability;

  • 1. We have no idea by what miracle it happened … 5. We can do it consistently and have trained others to do it

Metric 5. Were the customers open to doing more business?

  • 1. Everyone told their friends to run the other way … 5. Lots of referrals and invitations to do more business

Metric 6. Was it profitable enough for the team to want to keep doing it?

1. Not even if this was the only way I could make money … 5. Michael Dell, Bill Gates and the rest of college dropouts got nothing on me

Metric 7. Was everything done to minimize risks?

  • 1. I am just glad we are not dead or in jail right now … 5. Stakeholders, community and environment could not possibly be harmed by this project

Metric 8. Does any of this matter in a really long run?

  • 1. In the long run, we are all dead. – John M. Keynes … 5. The impact of this project will matter even after this Universe is no more.

Analyzing the results

This has been a great success with students quickly exploring many real business ideas and one of them managing to get an $80 return on the money, while most made between $7 and $30.

More importantly, they learned a lot about starting a business, mainly that it’s not a pretty theory, but rather a matter of doing something others will pay for. For the next round I have tightened up the requirements and suspect they will do even better next time.

What's next?

  • Access templates. Sign-up with a free account at BSC Designer for immediate access to 23 scorecard templates, including Management Skills Metrics discussed in this article.
  • Master skills. Check out free video tutorial for the Balanced Scorecard. Master your strategy planning and execution skills with Strategy Execution training.
  • Automate. Learn what Balanced Scorecard software is and how it can make your life easier by automating strategy execution, KPIs, and strategy maps.

Oleg Tumarkin, Juris Doctor, Master of Business Administration, Certified Six Sigma Black Belt, Practitioner of Theory of Inventive Problem Solving (TRIZ) is an Adjunct Professor of Business at Concordia University of Wisconsin.

BSC Designer is a Balanced Scorecard software that is helping companies to better formulate their strategies and make the process of strategy execution more tangible with KPIs.

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