KPI (Key Performance Indicator)
Definition
A small set of numbers that show whether the business is on track, tracked regularly and tied to specific goals.
Want a deeper explanation?
The best KPI sets are short. Five to eight numbers you actually review each month beat a dashboard of forty that nobody reads.
Each KPI should lead to a decision when it moves. Watch for: KPIs built on unreliable books, which turn a scorecard into a guess.
Example
A brand's monthly KPI scorecard: net sales, contribution margin %, MER, cash on hand, days inventory on hand and repeat purchase rate.