KEY PERFORMANCE INDICATOR (KPI) SYSTEM
What Gets Measured Gets Managed. And What Gets Managed Improves. The KPI System That Turns Guesswork Into Leadership.
Most business owners run their business by feel.
They can tell when a month “feels busy.”
They know when clients “seem happy.”
They sense when the team “seems productive.”
They guess at whether growth is happening.
But intuition — while valuable — is not management.
Professional leadership requires data.
A KPI System is not about tracking every number.
It is about identifying the few numbers that indicate:
The health of the business
The direction of momentum
The success of the team
The strength of capacity
The predictability of revenue
Because a business is not managed by opinion.
It is managed by evidence.
The Three Categories of KPIs
1. Leading Indicators (Predict the future)
Examples:
Number of new inquiries per week
Number of conversations booked
Proposal-to-call ratio
These indicators tell you where revenue is likely heading.
2. In-Progress Indicators (Show efficiency)
Examples:
On-time delivery rate
Customer wait time
Project cycle time
These indicators show whether the business is operating smoothly.
3. Lagging Indicators (Report results already happened)
Examples:
Monthly Revenue
Gross Profit Margin
Net Profit
These indicators tell you what has happened — but they cannot change it.
Most small businesses only track lagging indicators — so they react when it’s too late.
A mature business tracks all three.
Your KPI System Must Be Visible and Reviewed Weekly
A KPI dashboard is useless if it is:
Hidden in a spreadsheet
Updated inconsistently
Not discussed with the team
Not tied to performance expectations
KPIs only matter when they change behavior.
The KPI meeting is where leadership truly happens:
Celebrate progress
Identify constraints
Make adjustments
Assign action to next steps
This is where the business relentlessly improves.
Your Coaching Assignment
Choose 5 KPIs total:
2 Leading
2 In-Progress
1 Lagging
Review them every week — no exceptions.
This rhythm alone can transform your operational maturity.
