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Published · transcript-backed

Sri Batchu: evaluation

25 Jun 2023 Lenny's Podcast Lessons from scaling Ramp | Sri Batchu (Ramp, Instacart, Opendoor)

“Those are done based on judgment because at the end of the day, regardless of what metric framework you use, marginal decisions are marginal for a reason.”

— Sri Batchu

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Speaker
Sri Batchu
Attribution
Verified speaker
Claim type
evaluation
Recorded
25 Jun 2023
Publisher
Lenny's Podcast

Transcript context

…Knowing those sorts of formulas are often not perfect, how much weight do you put into that formula specifically? Yeah. And I think in general the planning process is not perfect. You can have a financial plan in Excel and the reality can diverge quite a bit. The only thing you can be certain of is that you're not going to accomplish exactly the plan. So we did a couple of things to that. One is setting a culture of we know this isn't perfect, this is like 70/30, 80/20, it's to guide. So we wouldn't use the translation factor to make a marginal decision if something is five or 10% off. Those are done based on judgment because at the end of the day, regardless of what metric framework you use, marginal decisions are marginal for a reason. They're really hard things to decide. And so the framework helped with just reducing the cognitive overload of decision making to only those that are marginal. So the ones that are obvious that are going to have big impact becomes clear even if the measurement framework isn't perfect. And so that's what we use. And the other thing that we just had as cadence is we would actually update all of the translations every six months for the new planning cycle based on new information that we knew on how moving X impacts MAO. Just to make it even more real, what are some examples of those lower level metrics? Is it increased conversion of sign up by X percent?…

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