Mid-Year Reset: The 4 Metrics That Tell Your Story
Whether you’re hitting the halfway mark of your fiscal year or kicking off a new planning cycle, now is the perfect time to step back and assess where your business really stands.
It’s easy to get caught up in the daily grind—especially when you’re juggling high-volume periods and major deals.
But here’s what separates top performers from average ones: they track the right metrics consistently.
Many firms think they’re being strategic when they review last year’s results and project forward. But that’s just the starting point. The firms that consistently outperform their competition focus on a few key numbers that actually drive decision-making.
You don’t need dozens of metrics cluttering your dashboard. You need the right four that together tell your complete business story. Here they are:
The Four Metrics That Matter Most
1. Revenue per Employee
What it is: Total net revenue divided by your full-time equivalent employees (including owners and directors)
Why it matters: This is your productivity baseline. It shows how efficiently you’re converting human capital into revenue. In today’s tight labor market, where talent costs are rising, this metric helps you balance competitive compensation with operational efficiency.
What to watch for: Declining trends may signal overstaffing, underperformance, or the need for better systems and processes.
2. Organic Growth Rate
What it is: Revenue growth from your existing operations, excluding any acquisitions or mergers
Why it matters: This shows whether your core business is actually getting stronger. You can buy growth through acquisitions, but organic growth proves your business model, client relationships, and market position are solid.
What to watch for: Consistent organic growth indicates healthy client retention, effective cross selling, and strong market positioning. Declining organic growth suggests fundamental issues that acquisitions can’t solve.
3. New Business Revenue (Sales Velocity)
What it is: Revenue from new clients as a percentage of your total revenue
Why it matters: This measures your sales momentum and market expansion success. It shows whether you’re successfully attracting new clients and growing your market presence.
What to watch for: Consistently strong new business percentages indicate effective marketing, competitive positioning, and sales execution. Declining new business revenue may signal low producer productivity or competitive pressure.
4. Total Growth Rate
What it is: Overall revenue growth including all sources—organic growth, new business, and acquisitions
Why it matters: This is your complete growth picture. While organic growth shows core strength and new business shows market expansion, total growth rate tells you if your overall strategy is working.
What to watch for: Total growth should ideally exceed your organic growth, showing you’re successfully expanding beyond your existing base. If total growth is declining while organic growth is stable, you may need to focus more on new business development.
How These Four Work Together
These metrics tell a powerful story when viewed together:
- High revenue per employee + strong organic growth = You’re building a valuable, efficient business
- Strong new business + healthy total growth = Your market expansion strategy is working
- Good organic growth but weak new business = You serve clients well but need better prospecting
- Strong total growth but declining organic growth = You may be masking core problems with acquisitions
Making It Actionable
Track these four metrics quarterly over a three-year period.
Create a simple table that shows:
- Current quarter vs. same quarter last year
- Trending direction over the past four quarters
- Three-year average for context
This historical view reveals patterns that single-quarter snapshots miss and helps you make more informed strategic decisions.
The Competitive Edge
I often see many firms drowning in spreadsheets full of metrics they don’t act on. By focusing on these four key numbers, you’ll have clarity on what’s really driving your business performance.
More importantly, you’ll know exactly where to focus your energy:
- Low revenue per employee? Invest in training, systems, or process improvements
- Weak organic growth? Focus on client retention and service expansion
- Declining new business? Ramp up marketing and sales efforts
- Poor total growth despite good underlying metrics? Examine your pricing and market positioning
Your Next Step
Pick one of these four metrics to focus on this quarter. Set a specific improvement target and track your progress monthly. Once you’ve mastered one, add another.
The firms that thrive in the coming years will be those that measure what matters most—and act decisively on what they discover.
Which of these four metrics will you start tracking this month?
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