Defining and tracking KPIs

Key Performance Indicators (KPIs) provide the numbers to measure progress toward your strategic goals. Well-designed KPIs enable data-driven decisions and create accountability for results across the organization.

Start by identifying 5-7 primary metrics that directly measure progress toward your vision and strategy. These typically include both business metrics (revenue, customer acquisition cost, lifetime value) and product metrics (adoption, engagement, retention). For each KPI, document the definition, measurement method, data source, reporting frequency, and targets across different timeframes.

When selecting KPIs, follow these principles:

• Choose metrics that directly reflect progress toward strategic goals.
• Balance leading indicators (that predict future success) with lagging indicators (that confirm past performance).
• Ensure metrics are actionable. Your team should be able to influence them
• Keep the total number manageable to maintain focus.