Metric-Based Team Structure

A framework for organizing teams around specific KPIs and metrics rather than traditional department structures, based on Red Ventures' successful implementation.

Core Philosophy

• Structure teams around specific KPIs rather than traditional departments
• Focus on metrics that directly impact business outcomes
• Every person understands their direct contribution to specific metrics

Team Organization Examples

• Team Click-Through Rate
• Team Conversion Rate
• Team Traffic Volume
• Teams organized by the specific KPI they're trying to drive
• Deep focus on individual metrics rather than general department goals

Key Implementation Elements

• Short, focused meetings
• Bottom-line numbers are the primary discussion point
• Every discussion ties back to EBITDA impact
• Work is never discussed independently of metrics
• Teams shaped around specific performance indicators

Red Ventures' Success Factors

• Culture of metrics-first thinking
• Every person optimizing for EBITDA in discussions
• High energy, smart execution
• Regular business reviews
  • 20-minute updates on business performance
  • Real decisions made during reviews
  • Leadership team involvement
  • 40 reviews over 2 days

Results

• Enables clear accountability
• Drives focused improvement in specific areas
• Creates deep expertise in particular metrics
• Allows for better optimization of individual KPIs
• Clearer path to business impact

This structure helped Red Ventures grow from a small company to managing billion-dollar properties by maintaining laser focus on specific metrics and organizing teams around them.