Key Performance Indicator
Also called KPI
Key performance indicator: a specific metric a team tracks to gauge how well it is doing against its goals, revenue growth, churn, activation. The numbers you steer by.
Why it matters
Choosing the right KPIs focuses a team on what actually matters and makes success measurable; the wrong ones drive the wrong behavior. Picking a few meaningful KPIs, not a dashboard of everything, is the skill.
For example
The growth team's KPI is weekly active users, the one number it steers by, rather than a dashboard of two dozen metrics.
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Related terms
Also in Starting Up
See how founders actually handle this on Co-founders, team and legal, part of the Starting Up hub.
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