BlogData & AI
Choosing KPIs that drive action
By Micah Ondiwa, Senior Software Engineer 1 min read
A good KPI is linked to a decision, owned by someone, measured consistently and reviewed often enough to matter.
Organisations often track many indicators and act on few. The difference lies in how KPIs are chosen.
Link each KPI to an objective
Start from what the organisation is trying to achieve and choose measures that show progress towards it.
Give it an owner
Every KPI needs someone responsible for understanding it and acting when it moves.
Define it precisely
Write down the formula, data source, frequency and any exclusions. Ambiguous definitions lead to arguments instead of action.
Balance leading and lagging indicators
Lagging indicators show results (revenue, incidents). Leading indicators show what drives them (pipeline, near-misses). You need both.
Keep the list short
A handful of KPIs per team is enough. More dilutes attention.
Review regularly
Review KPIs in regular meetings and retire those that no longer drive decisions.
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About the author
Micah Ondiwa
Senior Software Engineer
Micah Ondiwa writes about software engineering — application architecture, APIs and integration, data and AI-assisted development, and reliable delivery.