The scoreboard, honestly: the hard targets, how often each one is actually looked at,
and the quiet human signals that never make it onto a dashboard.
Operating Margin Improvement
The percentage of revenue left after paying for variable costs of production, like wages and raw materials. This shows how efficiently we're running the business.
Target · Contribute to a 2-3% year-on-year improvement in overall operating margin.If our current operating margin is 18%, your initiatives should help push that to 20-21% over the next 12 months, perhaps by optimising our supply chain or automating key back-office functions.
Cost of Goods Sold (COGS) Reduction
The direct costs attributable to the production of the goods sold by a company. Lower COGS means higher gross profit.
Target · Reduce COGS by 5-8% annually through supply chain optimisation, process efficiencies, or negotiation.Negotiating better deals with our primary component suppliers, or streamlining our manufacturing process to reduce waste, leading to a £2M saving on COGS this year.
On-Time Delivery (OTD) / Service Level Agreement (SLA) Adherence
The percentage of orders delivered or services rendered by the promised date, or within agreed service parameters. This directly impacts customer satisfaction.
Target · Maintain 98% OTD for physical products and 99.5% SLA adherence for digital services.Ensuring our logistics network consistently gets products to customers within the 2-day window, or that our platform uptime never dips below 99.9%, even during peak times.
Scalability Index (Revenue Growth vs. Headcount Growth)
How much revenue we can grow without proportionally increasing our operational headcount. A higher index means we're more efficient.
Target · Achieve 50% revenue growth with no more than 15% growth in operational headcount over a 3-year period.Growing our revenue from £50M to £75M, while only increasing our operations team from 200 to 230 people, showing significant efficiency gains through automation and process re-engineering.
Working Capital Optimisation
Managing current assets and liabilities to maximise cash flow and operational efficiency. This includes inventory turnover, accounts receivable days, and accounts payable days.
Target · Improve cash conversion cycle by 10 days, reducing inventory holding costs by 15%.Implementing a new inventory management system that reduces excess stock, freeing up £1.5M in cash, and negotiating better payment terms with suppliers to extend our payable days.
Board and Investor Confidence
The level of trust and confidence that the Board of Directors and key investors have in the company's operational capabilities and your strategic direction.
- Regularly sought for strategic input by the CEO and Board
- positive feedback during board presentations
- investor confidence in operational forecasts
- successful capital raises due to strong operational narrative
- no unexpected operational 'surprises' reaching the board.
Organisational Resilience & Agility
The company's ability to quickly adapt to market changes, overcome unexpected disruptions (e.g., supply chain shocks, economic downturns), and pivot operational strategies effectively.
- Demonstrated ability to navigate major external disruptions with minimal impact on business continuity
- successful, rapid re-prioritisation of operational resources in response to strategic pivots
- positive feedback from executive peers on the 'speed' and 'flexibility' of operations
- robust disaster recovery and business continuity plans in place and tested.
Cross-Functional Executive Alignment
The degree to which operational strategy is integrated and supported by other C-suite functions (Product, Sales, Finance, Tech), and how effectively you lead collaborative initiatives.
- Operations strategy is consistently reflected in other departmental OKRs
- active participation and leadership in cross-functional strategic planning sessions
- positive feedback from C-suite peers regarding collaboration and problem-solving
- successful execution of company-wide initiatives that require deep operational integration (e.g., new market entry, major product launch).
Talent Development & Succession Planning
Your ability to build, mentor, and retain a high-performing operational leadership team, ensuring a strong pipeline for future executive roles.
- High retention rates for direct reports and their teams
- clear succession plans in place for critical operational leadership roles
- demonstrable examples of VPs/Directors promoted from within your organisation
- positive feedback from team members on mentorship and career growth opportunities
- a diverse and inclusive operational leadership team.
Operational Innovation & Digital Transformation
The successful identification, championing, and implementation of new technologies and methodologies that significantly improve operational efficiency, effectiveness, or competitive advantage.
- Successful deployment of major automation or AI initiatives across operations
- measurable improvements in process cycle times or cost savings directly attributable to new tech
- industry recognition for operational innovation
- a culture of continuous improvement and experimentation within the operations function
- regular presentations to the board on operational tech roadmap and ROI.