Glossary
KPI
A KPI is a number a leadership team has agreed to run the business by: one owner, a goal written next to it, and a slot on the weekly agenda. Every KPI is a metric, and almost no metric is a KPI. The difference is not the formula. It is whether somebody has to answer for the number in front of colleagues when it moves the wrong way.
01
What a KPI has to have before it earns a row
On a weekly Scorecard a KPI is one row: the measure, the owner, the goal, and thirteen weeks of history running left to right. Five to fifteen rows is the working range for a leadership team. A number nobody can pull in five minutes on a Monday morning gets a cheaper substitute or moves to the monthly review.
Calling a number a KPI is a commitment rather than a description. Most companies already produce hundreds of measurements and act on four of them, so the useful work is subtraction: deciding which handful the team will be held to. Skip that step and you get a board nobody reads and a meeting that runs on anecdote anyway.
Worked example: A twenty-person commercial cleaning firm listed thirty-one numbers its software could produce, then cut to seven: sites visited, jobs finished on schedule, callbacks, new contracts signed, hours billed against hours paid, cash collected, and staff absence. Each got a name and a goal. The other twenty-four still sit in reports, and nobody has asked for one of them in a year.
Sources: kpi.org/kpi-basics; klipfolio.com/resources/kpi-examples
Metric
A metric is any measurement your systems can produce: page views, tickets closed, average order value, headcount, days since the last accident.
02Metric owner
A metric owner is the single person who answers for a row every week, which is not the same as the person who happens to have access to the report.
03Target
A target is the number written beside a measure that says what a good week looks like: twelve proposals, ninety-five percent on time, cash collected.
04Measurable
A measurable is a single number owned by one person, with a goal against it and a period, and it is what a Scorecard row or a Rock finish line is made of.
05KPIs: what they are, how many to track, and which matter
A practical guide to key performance indicators for small companies: definitions, leading vs lagging measures, examples by department, and how many to track.
Start with a real question
Not sure which of these you actually need?
Tell us what the leadership team is arguing about. A person replies within one business day with a straight answer, whether that is a book, a tool or an implementer.
A person reads every one.