1 Learn the concept
Tracking irrelevant KPIs distracts you from the things that truly matter and leaves you stressed about numbers that have no impact on the company's development. The skill is choosing the right measures, not tracking the most. This lesson explains how to pick business metrics tied to goals, so each number leads to a decision.
2 See it in action
- Tie each metric to a business goal.
- Prefer metrics that you can influence.
- Separate leading indicators, which predict results, from lagging indicators, which report them.
- Review metrics regularly and remove ones that no longer help.
Worked example
Comparing two products
Product A: revenue $20,000, costs $14,000. Margin: 30 percent.
Product B: revenue $30,000, costs $28,000. Margin: 6.7 percent.
Insight: B brings more revenue but far less profit.
Action: look at B's costs or raise its price.
Check: include all costs, such as shipping and returns.
3 Study an example
Example scenario
A team tracks forty numbers and acts on none. After choosing five that link to its goals, its weekly review becomes short and leads to clear actions.
4 Apply it and download
- List the metrics you track now.
- Keep the five that matter most.
- Note what action each would trigger.
Worksheet Data cleaning checklist and report templateOpen, print or save as PDF