Let’s be honest: EBITDA is a bullshit metric. Sure, it looks impressive on paper, but it’s not the full story. Running your company based on EBITDA alone is like trying to win a race by only looking at the fuel gauge. It shifts the focus away from what truly matters: your people, your customers, and your growth trajectory.
For those unfamiliar, EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s often used as a measure of a company’s financial performance, but it doesn’t account for critical factors like cash flow or operational challenges. In other words, it’s a sanitized metric that can look great while hiding underlying issues.
The Real Metrics of a Thriving Business
If you want a company that grows sustainably and meaningfully, focus on these core pillars:
- Leads: Without a steady flow of potential customers, your business isn’t going anywhere.
- Sales Conversion: Leads mean nothing if they don’t convert. Sharpen your sales process and make it seamless.
- Culture: A strong, engaged culture is your secret weapon.
- Customer Service: Happy customers are loyal customers. Build relationships that last.
- Growth Aspiration for the Right Reasons: Growth isn’t just about getting bigger; it’s about getting better.
Get Out of the Spreadsheet and Into the Trenches
Far too often, leaders distance themselves from their teams. They chase metrics on screens instead of listening to their staff and customers. The best insights don’t come from EBITDA; they come from real conversations.
Ask your team questions like:
- What can we do better?
- What should we try next?
- What do you think we should focus on over the next two years?
The worst leaders are the ones who never ask or, even worse, ask but never listen. If you’re going to gather input, be prepared to act on it.
Why Employee Input Is Your Biggest Asset
Take a look at companies like Southwest Airlines. They’re known for listening to employees at all levels, which has led to innovative ideas, higher engagement, and unparalleled customer service. Their culture is built on trust and collaboration, and it’s a key driver of their success.
Or consider WD-40 Company. Their CEO, Garry Ridge , frequently surveys employees and involves them in decision-making. The result? A 93% employee engagement rate and an incredibly loyal workforce.
Engage Your Team with Real Reasons for Growth
Gone are the days when you could sell growth to your staff with vague promises of “it’s good for everyone.” You need to show them what growth means to them:
- Financial incentives or bonuses
- More exciting projects
- Opportunities for travel or learning
- Better clients
- A less stressful work environment
- A genuine sense of achievement
When people see how growth benefits them directly, they’ll be more invested in helping the company get there.
Culture Eats Spreadsheets for Breakfast
An engaged workforce solves problems before they even land on your desk. When employees feel heard and valued, they’re proactive, innovative, and committed. Treat them like numbers, and you’ll get compliance at best and resentment at worst.
Final Thought: EBITDA Won’t Save You
It’s time to stop worshipping at the altar of EBITDA. Real success comes from understanding what your team and customers need and aligning your goals with theirs. Ask questions, listen to the answers, and most importantly, act on what you learn.
If you want a company that’s more than just numbers on a spreadsheet, start by building a culture where everyone has a voice and every voice matters.
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