Here’s an interesting new term for entrepreneurs to be aware of – Commitment delivery percentage. I don’t know for sure but I think in a year from now, most startups will start to follow this metric more seriously than others. Some investors are already claiming this metric to be the #1 indicator of future success of startups.
At the Microsoft Accelerator in Bangalore, there are 11 companies in our current batch (Sep to Dec). Every week I send our reports to all our mentors with the weekly commitments that startups have signed up for and how many of them have met their commitments.
Since startup discipline is something I am very passionate about, it goes without saying that I track everything at the accelerator.
Commitments fall into 2 buckets – product and customer. Overall we focus on 3 areas in the accelerator –Product development, Customer development and Revenue development, but initially revenue development is largely ignored since most folks are building MVP and getting early adopters.
Each of these 2 buckets of commitments is not something the startup comes up with alone in a vacuum. I typically discuss the commitments at our weekly all hands and it is a fairly public affair. While some teams try to lower the bar for their commitments, most are aggressive with what they commit to.
Product commitments are delivery of new set of features, versions or changes per a customer / early adopters requirement. Since many companies have mobile or web applications, most startups at the accelerator become customers of other startups so the feedback loop is quick and immediate.