Stop Measuring Everything! I Repeat, Stop Measuring Everything!
Too many KPIs are killing your business. You think you’re tracking everything, but in reality, you’re just drowning in data.
You’re not alone. Even the world’s best business minds have faced this problem. Warren Buffett, one of the greatest investors of all time, has always warned against focusing on too many numbers—because not all data is useful.
So why do so many companies track dozens (or even hundreds) of KPIs… and still struggle to make smart decisions?
Let’s talk about why measuring too much is a dangerous trap—and how to fix it.
The KPI Overload Problem: Why More Data ≠ Better Decisions
Most businesses don’t have a KPI problem. They have a focus problem.
Executives and managers often assume that more data leads to better decisions. But here’s what actually happens when you track too many KPIs:
❌ No one knows which numbers actually matter
❌ Teams waste hours reviewing reports instead of acting
❌ People optimize for the wrong things just because they’re measured
❌ Accountability is unclear because every process has 15+ KPIs attached
If everything is a priority, nothing is a priority.
The Buffett Principle: Less is More
Warren Buffett doesn’t rely on dozens of complex financial ratios to evaluate companies. He focuses on a handful of key numbers, like: ✔ Return on capital employed (ROCE) – Is the company using money efficiently? ✔ Free cash flow – How much real profit is the business generating? ✔ Intrinsic value growth – Is this business compounding value over time?
That’s it. A trillion-dollar investment empire built on a few key numbers.
So why are you tracking 27 KPIs for your marketing team?
The KPI Selection Fix: How to Choose Only the Numbers That Matter
If you want to stop drowning in useless data, follow these steps from the KPI Alchemist process to select only the KPIs that truly drive success.
1️⃣ Start with Strategy, Not Data
Most companies do this backwards:
- WRONG: “Let’s measure everything we can and see what’s useful.”
- RIGHT: “What are our 3-5 biggest strategic priorities? Let’s track the numbers that tell us if we’re winning.”
The KPI Alchemist Approach:
- Identify your strategic process (e.g., “From lead to customer” or “From order to delivery”).
- Break it down into main processes (5-8 max) and sub-processes (max 8 per main process).
- Every KPI should be tied to one specific process step—if it’s not, drop it.
Example: Instead of tracking 15 marketing KPIs, start with one simple strategic question: “Are we turning website visitors into paying customers?”
That leads to a useful KPI: Conversion rate from website visit to sale.
Everything else is secondary.
2️⃣ Brainstorm Everything, Then Cut Ruthlessly
Once you know your key processes, you might still have too many potential KPIs.
The solution? Use the Impact Matrix:
✔ Does this metric have a HIGH IMPACT on success?
✔ Is this metric EASY TO MEASURE?
The KPI Alchemist process helps teams brainstorm all possible KPIs, then filter them based on impact.
Example:
❌ A fancy “brand awareness score” sounds nice, but does it help you make a decision?
✅ A simple “qualified leads per week” is clear, actionable, and high impact.
3️⃣ Test Before You Automate
The biggest mistake companies make: They build fancy dashboards before they know if they’re tracking the right numbers.
The KPI Alchemist Rule: Do NOT start with Power BI. Start with Excel.
- Track your KPIs manually for a few weeks.
- Observe: Do these numbers actually help you make decisions?
- Only automate when you KNOW your KPIs tell the right story.
Buffett tracks cash flow manually before making investment decisions. Shouldn’t you do the same with your KPIs?
Final Thought: Stop Measuring Everything. Start Measuring What Matters.
Too many KPIs = no focus, no accountability, no action.
If Warren Buffett can build a trillion-dollar empire with a few key numbers, your business doesn’t need 37 different KPIs to measure sales.
In the KPI Alchemist program, we don’t just talk about KPIs—we build a system that works for your business. You’ll walk away with:
✅ A proven process to define the right KPIs
✅ A structured KPI framework that drives accountability
✅ Immediate impact—KPIs that tell the right story, not just numbers in a report
Want to build KPIs that actually drive success? Join the KPI Alchemist program and learn how to turn data into action. 🚀
Hope you are inspired to do a few things better as of tomorrow relating #kpis.
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