Lifeboat Excercise
In a startup context, a lifeboat exercise typically involves the executive team identifying which team members or business functions are essential to the company's survival in the event of a crisis, such as a funding shortfall, economic headwinds, or loss of a key customer.
The exercise helps the startup identify and prioritize the most critical resources, enabling them to make informed decisions and develop contingency plans to ensure the business can weather unforeseen challenges.
3 Metrics to Determine Who Stays
The first metric is identifying employees who can increase revenue. These individuals are accountable as income producers and are always thinking of new and creative ways to improve the sales process, drive new sales, and increase revenue.
The second metric is identifying employees who can cut costs. While accountants are stereotypically associated with cost-cutting, any employee who can find ways to reduce expenses is valuable.
The third and final metric is identifying employees who can add value to the company. This metric is particularly relevant for entrepreneurial companies, where it is essential to add value to the bottom line.