How to Choose the Right KPIs (Without Losing Your Mind)

Choosing KPIs sounds easy.

Until you’re staring at 400 metrics and wondering if "likes per post" really matters to your bottom line.

Here’s how to cut through the noise and pick KPIs that actually help you win.

1. Start With the Business Goal (Not the Data)

Before you even open Excel, ask yourself:

• What are we trying to achieve?

• What does success actually look like?

If the goal is to grow revenue, focus on revenue drivers.

If the goal is to cut costs, track savings, not just spend.

Every KPI should scream: "I exist because we care about this outcome."

2. Choose Actionable Metrics

A good KPI does more than make you look busy.

It tells you what to do next.

Bad KPI: "Total page views" (what do you even do with that?)Good KPI: "Conversion rate from page to lead" (if it's low, you can fix it)

Ask yourself: "If this number changes, will it lead to a decision?"

If the answer’s no, ditch it.

3. Keep It Short

You are not collecting Pokémon.

You do not need to "catch them all."

Pick:

• 3-5 KPIs per goal

• No more than 15 KPIs total for a team

• Even fewer if you actually want people to read them

Less is more.

Too many KPIs = nobody remembers any of them.

4. Make Sure You Can Actually Measure It

Sounds obvious.

It’s not.

If you choose "customer satisfaction," but you don’t run surveys or collect feedback, you’re stuck.

Pick KPIs based on what data you already have or can realistically get without creating a second full-time job.

5. Define Success Before You Start

A KPI without a target is just... a number.

Set clear expectations:

• What’s good?

• What’s bad?

• What’s "book a holiday and celebrate"?

Example: If customer churn is 5%, is that good or terrifying? Decide upfront, not after the first bad month.

6. Review and Adjust

KPIs are not tattoos.

You’re allowed to change them.

Every 6-12 months:

• Check if the KPIs are still aligned with your goals

• Drop anything that’s no longer useful

• Add new ones if your priorities shift

What worked during a product launch probably won’t work during a cost-cutting drive.

Stay flexible.

Choosing KPIs isn’t about finding fancy numbers.

It’s about finding the right ones that drive action.

If you:

• Link them to goals

• Make them actionable

• Keep them few and focused

You’ll have a reporting system that actually moves the business forward — not just fills another dashboard.

Next time you're tempted to add "monthly coffee consumption per employee" as a KPI, remember:

Just because you can measure it doesn’t mean you should.