What is a KPI?
A Key Performance Indicator is a measurable value that shows how well the business is achieving a key objective. Good KPIs are specific, measurable, owned by someone, and tied to a decision — if the number moves, someone knows what to do.
How to choose the right KPIs
- Start from goals, not from available data.
- Pick 5–7 KPIs per level — company, department, team.
- Mix lagging (results: revenue, margin) and leading (drivers: leads, on-time rate) indicators.
- Give each KPI an owner, a target and a review frequency.
- Define the formula precisely so everyone calculates it the same way.
KPI examples by department
| Department | KPIs |
|---|---|
| Sales | Revenue vs target, conversion rate, average order value |
| Operations | On-time delivery, cost per order, wastage % |
| Finance | Gross margin, cash conversion cycle, overdue receivables |
| People | Attrition, absenteeism, training hours |
Common mistakes to avoid
- Tracking 40 KPIs that nobody acts on.
- KPIs without owners.
- Different teams calculating the same KPI differently.
How DOOfy helps
KPI management fails when numbers arrive late or disagree. AIMOS One calculates KPIs from the same connected data for every team and shows them live, so reviews start from one version of the truth.
Frequently asked questions
What is a leading indicator?
A measure that predicts future results — for example, sales pipeline or on-time production — as opposed to a lagging indicator like monthly revenue.
How many KPIs should a business track?
A handful at each level — typically 5 to 7 — so attention stays on what matters.