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Defining effective metrics can be tricky. We might track too many, struggle to use them consistently, or focus on details that don’t give us a clear view of the big picture. If we aren’t able to effectively use the measurements we take to inform decisions, they aren’t providing value.
A good starting point is finding about ten numbers that capture what we’re responsible for and will let us know whether we need to take action. Five is probably too low, fifteen is probably too high, and you should have a solid baseline for each. The baselines are a typical or target range, and any fluctuations outside of that range merit special attention.
Start with executive/leadership team numbers; there will be a few from each department and a weekly review of 30 minutes is appropriate. A consistent and tight cadence is key; it will help catch issues or opportunities early, and keep numbers fresh in everyone’s mind. If gaps between the reviews get too long, the meeting will shift from focusing on what’s currently happening to understanding what happened in the past.
Each number will have an owner who is responsible for providing an update. This includes any changes from the prior meeting, whether it’s on track or not, and any notes about initiatives that might impact this number in the future. The outcome of the review is to determine if a follow-up discussion is required to address what to do about changes. There might be a short discussion to address anomalies, but any in-depth problem-solving or discussion should be handled elsewhere.
Know your baselines—whether they’re steady or seasonal—and review them to decide if an anomaly is large enough that it merits action. This includes both issues to address as well as opportunities to pursue. The best decision may be to do nothing— but without these numbers, you can’t make that call with confidence.
The main goal of this process is to shine a light on the organization’s overall health. Metrics should be broad enough to catch potential problems but simple enough to track regularly. Whenever possible, consolidate multiple data points into a single number that tells a bigger story. Ideal metrics zero in on numbers that are most closely tied to the results you’d like to see, but avoid complicated calculations or arbitrary weighting. Each number should be easy to grasp conceptually for any member of the team. Some examples:
- Number of prospects that meet a certain threshold of engagement
- More meaningful than net new lead volume
- Count of opportunities moving through each pipeline stage
- Avoids including stalled and unlikely-to-close deals in projections
- Percentage of total sales by the single largest customer
- Captures revenue concentration risk
Below the executive-level metrics, use the same concept for department-level metrics. The marketing team might report three key numbers to the executive team, but maintain its own list of eight or twelve numbers. These should be reviewed at the department level on a similar cadence to the executive review. They don’t need to roll up exactly into the executive summary but should provide an additional layer of detail.
Look for holistic numbers, but keep an eye on individual fluctuations as well. Use consistent methods such as rolling averages, annual goals, or monthly percentage-to-target. There are a variety of tools that can help manage these calculations, but the key is to use a standardized template or dashboard for each review. Consistency helps you spot changes early, and regular reviews ensure you’re always making informed decisions—even if the decision is simply to keep doing what you’re already doing.
Pick ten metrics, keep them concise, understand your baselines, and review them regularly. These are simple yet powerful steps to focus your measurements and turn them into decisions.
If you’re looking to get started, we like Microsoft’s Power BI Scorecard feature. We also have created a Google Sheets template that turns periodic updates into a progress report, which you can view and copy here: Pedal Lucid - Metrics Progress Tracker.
