KPI

A number tracked continuously because it indicates the health of the business.

Example

MRR, churn, activation, runway.

Important

KPIs are the dials you watch; OKRs are what you are trying to change this quarter. Confusing them turns planning into reporting.

Related terms

• OKRs — Objectives (what you want) paired with Key Results (the measurable evidence you got it).
• North star metric — The single measure that best captures the value customers get from your product.
• Vanity metric — A number that rises reliably and changes no decision.

Lessons that explain it

• Setting expectations — Most performance problems are expectation problems. People rarely fail at a job they clearly understood. (10 min)
• OKRs and KPIs — KPIs are the dials you watch. OKRs are what you are trying to change this quarter. Confusing them turns planning into reporting. (12 min)
• What to measure, and what to ignore — Different stages need different numbers. Measuring everything is the same as measuring nothing. (12 min)

All 176 terms in the Founder glossary