Too Many KPIs? You're Lost. Focus on 5. Now Make S**T Happen!
Ah yes, KPIs—those magical numbers that promise to unlock operational nirvana, align teams, and impress investors. But here’s the thing: when your dashboard starts to look like the control panel of a spaceship, it’s time to pump the brakes.
Having too many KPIs isn’t "goal-setting"; it’s death by metrics. It leads to noise, confusion, and paralysis. You’ll have your sales team tracking 20 metrics, the ops folks chasing 15 more, and marketing drowning in vanity metrics that sound impressive but move the needle zero. No one knows what actually matters anymore, and your meetings devolve into Excel wars rather than strategic decisions.
Let’s simplify. Let’s be clear. Let’s talk about focusing on 5.
The Problem with Too Many KPIs
Imagine your team as a group of runners. If you tell them to sprint toward five different finish lines at once, what do you get? Mass confusion. Some end up running in circles; others drop out entirely. The result? A whole lot of effort with little progress.
When everything is a priority, nothing really is. KPIs only work when they act as guideposts, not a to-do list. If you have 25 KPIs, you’re just measuring for the sake of measuring—and your team will resent you for it.
Why Just 5 KPIs?
Picking 5 KPIs ties your team’s success directly to the company’s top priorities. Five metrics aligned with business goals = focus. It keeps the entire company rowing in the same direction. Anything outside of these five? That’s noise.
Here’s the magic: clarity enables action. It’s easier to build momentum when your people know what actually matters. If they understand how their success contributes to those 5 KPIs, they’ll feel empowered to make faster decisions and get s**t done.
How to Pick Your 5 KPIs (and Stick to Them)
Let’s keep it practical. These five KPIs need to reflect what success means for the company this year. They should be:
· Directly tied to business goals. Think revenue, customer acquisition, cost reduction—not abstract ideas.
· Meaningful to the whole team. If it doesn’t matter to operations, sales, and customer service, it’s probably not the right KPI.
· Measurable. “Make customers happier” is cute, but “reduce churn by 5%” gets you paid.
· Actionable. Every KPI should be a lever your team can pull. No fluff.
· Consistent. Commit to these five. If a shiny new metric pops up mid-year, resist the urge to chase it. Focus wins.
Example KPIs for a Killer Year
Let’s say your goal is scaling a B2B Startup. Here’s what your five could look like:
Monthly Recurring Revenue (MRR): Are you consistently growing revenue?
Customer Acquisition Cost (CAC): How efficient are you at acquiring new customers?
Churn Rate: Are you keeping the customers you fought so hard to win?
Net Promoter Score (NPS): Are customers so happy they’ll recommend you?
Operating Expense Ratio: What are your Expenses vs Sales Shipped?
Five numbers. Five priorities. That’s it. No fluff, no noise—just metrics that matter.
Less is More. Make S**t Happen
KPIs aren’t about looking busy; they’re about driving results. Stop drowning in spreadsheets and chasing metrics that don’t move the needle. Focus on five KPIs, communicate them relentlessly, and empower your team to own those numbers.
Because at the end of the day, your business doesn’t need more metrics. It needs more wins. Keep it simple, keep it clear—and now go make s**t happen.
-Anthony (Tony) Dorsey
