𝗧𝗵𝗲 𝗦𝗵𝗼𝗰𝗸𝗶𝗻𝗴 𝗧𝗿𝘂𝘁𝗵 𝗔𝗯𝗼𝘂𝘁 𝗠𝗶𝘀𝗮𝗹𝗶𝗴𝗻𝗲𝗱 𝗞𝗣𝗜𝘀

Last week I sat down with an entrepreneur who had just had a shocking epiphany about his business.

He told me: “𝘐 𝘭𝘰𝘰𝘬𝘦𝘥 𝘢𝘵 𝘰𝘶𝘳 𝘯𝘶𝘮𝘣𝘦𝘳𝘴 𝘢𝘯𝘥 𝘦𝘷𝘦𝘳𝘺𝘵𝘩𝘪𝘯𝘨 𝘴𝘦𝘦𝘮𝘦𝘥 𝘨𝘰𝘰𝘥—𝘳𝘦𝘷𝘦𝘯𝘶𝘦 𝘸𝘢𝘴 𝘶𝘱, 𝘦𝘹𝘱𝘦𝘯𝘴𝘦𝘴 𝘸𝘦𝘳𝘦 𝘧𝘭𝘢𝘵. 𝘉𝘶𝘵 𝘵𝘩𝘦𝘯 𝘐 𝘴𝘢𝘸 𝘵𝘩𝘦 𝘳𝘦𝘢𝘭 𝘯𝘶𝘮𝘣𝘦𝘳𝘴 𝘢𝘯𝘥 𝘪𝘵 𝘩𝘪𝘵 𝘮𝘦: 𝘸𝘦 𝘸𝘦𝘳𝘦 𝘨𝘳𝘰𝘸𝘪𝘯𝘨 𝘪𝘯 𝘢𝘭𝘭 𝘵𝘩𝘦 𝘸𝘳𝘰𝘯𝘨 𝘸𝘢𝘺𝘴. 𝘐 𝘥𝘪𝘥𝘯’𝘵 𝘴𝘦𝘦 𝘪𝘵 𝘤𝘰𝘮𝘪𝘯𝘨 𝘣𝘦𝘤𝘢𝘶𝘴𝘦 𝘮𝘺 𝘒𝘗𝘐𝘴 𝘸𝘦𝘳𝘦𝘯’𝘵 𝘵𝘦𝘭𝘭𝘪𝘯𝘨 𝘮𝘦 𝘵𝘩𝘦 𝘸𝘩𝘰𝘭𝘦 𝘴𝘵𝘰𝘳𝘺.”

Here’s what happened: This entrepreneur’s KPIs were all output metrics—revenue growth, orders shipped, productivity. Those looked good on paper but missed some key insights:
1️⃣ Customer Retention: We were losing our best customers because we were focusing too much on getting new ones.
2️⃣ Operational Quality: Production speed was up but product complaints were rising.
3️⃣ Employee Engagement: Turnover was up but we had no KPI to flag disengagement early.

𝗜 𝗮𝘀𝗸𝗲𝗱 𝗵𝗶𝗺 𝗵𝗼𝘄 𝘁𝗵𝗶𝘀 𝗵𝗮𝗽𝗽𝗲𝗻𝗲𝗱 𝗮𝗻𝗱 𝗵𝗲 𝘀𝗮𝗶𝗱: “I thought KPIs were just about tracking numbers. I didn’t realize they needed to tell a story—one that predicts success, not just reports it after the fact.”

𝗛𝗲’𝘀 𝗻𝗼𝘁 𝗮𝗹𝗼𝗻𝗲. 𝗠𝗮𝗻𝘆 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 𝗵𝗮𝘃𝗲 𝗞𝗣𝗜𝘀 𝘁𝗵𝗮𝘁:
– Only focus on results, not the inputs and processes that drive them.
– Prioritize volume over quality (e.g. leads generated instead of qualified leads).
– Ignore leading indicators that could prevent problems before they happen.

What’s the point? KPIs should never be just about tracking data. They’re about clarity, focus and alignment across your business.
𝗧𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗞𝗣𝗜𝘀:
– Balance leading and lagging metrics.
– Reflect your strategy and goals.
– Drive decisions, not just report outcomes.

Good news is this entrepreneur has already started to turn things around. By rethinking his KPI strategy he’s creating a framework that predicts success—not surprises.

💡 If this sounds like you, let’s chat. Are your KPIs really telling you the story you need to hear? Comment or DM me and let’s get your metrics aligned with your mission.

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