Mr.Pickles profile picture
Mr.Pickles profile picture

Mr.Pickles

Sr. Customer Success Manager

Arsonist
Politicker
Influencer
+7

Revenue per head

Call me old-fashioned, but revenue per head can not be an indicator of a company's success.


If you close the year with 2M USD with a headcount of 100 people then your RPH is 20K. Now, you accomplish the same results next year, and out of the blue, you fire 50% of your HC, and boom! you doubled your revenue per head.


What are your thoughts on this practice? or am I barking at the wrong tree here?


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25 comments

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poweredbycaffeine
WR Lieutenant
10
☕️
$100M ARR with 100 employees IS indicative of a company's success. I worked for one such company, ended up with a $2B valuation on their next round because they proved they are successful at 100 employees, imagine what they can do with 200-300-400 employees. That's a VC bet worth taking.

On another note: you've written 3 posts today about your ex. We get it, you hate the CRO that ruined your time there--but your waste of energy is only going to make you more upset. Why spend that energy if you can save it for something positive?
CuriousFox
WR Officer
6
🦊
This is spot on Jacky. Don't ruin your Friday and your weekend. 
Mr.Pickles
Arsonist
1
Sr. Customer Success Manager
Legitness - It's not getting into a bad mood more about getting your thoughts. 
RedLightning
Politicker
2
Mid-Market AE
Insightful per usual @poweredbycaffeine 
Mr.Pickles
Arsonist
1
Sr. Customer Success Manager
catching up here - thank you for the insight. 
Diablo
Politicker
0
Sr. AE
Oh were there 3? didn't notice. Agree, it's not worth it to spend energy in something that's not going to help.
UrAssIsSaaS
Arsonist
4
SaaS Eater
@Jackywaky are we going to get a 4th post today about how much you hate said CRO?
InQ5WeTrust
Arsonist
3
No marketing, mayo isn't an MQL
I'm waiting for when he uploads the CRO's outfit of the day and does a review. 
Mr.Pickles
Arsonist
3
Sr. Customer Success Manager
nah - don't hate it. 
Kinonez
Celebrated Contributor
3
War Room Enthusiast
Makes no sense. Unless have of the team is underperforming, but still fire half of the team might not be the best way. Perhaps a better way would be to train the ones who aren’t delivering rather than letting them go. This might create a domino effect where people fear for their jobs and quit, so the company might loose their best talent.
InQ5WeTrust
Arsonist
1
No marketing, mayo isn't an MQL
You good my dude? This is a hypothetical question pointing out the supposed flawed nature of judging revenue per head...
CaneWolf
Politicker
3
Call me what you want, just sign the damn contract
It works really well for execs who get comped on metrics so they can slash headcount right before bonus time. Then they make millions!
Mr.Pickles
Arsonist
3
Sr. Customer Success Manager
I don't think he's commissng for that
AlecBaldwinsHairline
Valued Contributor
3
Head of Sales Development
What about employee attrition?  There are so many ways to indicate success.

Herb Kelleher (Southwest Airlines) said, getting more customers, planes, and routes are important, but if we don't have pilots to fly the damn plane we have no business.
Mr.Pickles
Arsonist
2
Sr. Customer Success Manager
Agree - right now all the great pilots are moving to greener pastures 
Diablo
Politicker
3
Sr. AE
That is one metric and the financial conclusion is always made by evaluating many such metrics (look at it broadly). So it's important ofcourse.
Mr.Pickles
Arsonist
2
Sr. Customer Success Manager
it is indeed - notmy fav tbh
MaximumRaizer
Politicker
2
Sales Manager
Just wanted to say I hope you figure it out.
Mr.Pickles
Arsonist
1
Sr. Customer Success Manager
I did - not working for that company anymore though... xD
Clashingsoulsspell
Politicker
2
ISR
If I'm the CEO I approved of this action. If the company is making numbers and succeeding then why do I, as the board-reporting figurehead, give a rats ass if you are pissing off employees? Find more when the current ones leave.
Mr.Pickles
Arsonist
1
Sr. Customer Success Manager
smh! that was a total dissaster 
BusterMcDialRipper
Politicker
1
Director of Dials
oh whatsup dude?
Mr.Pickles
Arsonist
0
Sr. Customer Success Manager
¿?
Blackwargreymon
Politicker
1
MDR
It works really well for execs who get comped on metrics so they can slash headcount right before bonus time.
MR.StretchISR
Politicker
0
ISR
It works really well for execs who get comped on metrics so they can slash headcount right before bonus time. Then they make millions!

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