In 2007, Gino Wickman famously declared in Traction:
“Everybody should have a number.”
The idea is simple: every employee should focus on a specific KPI (Key Performance Indicator) to optimize business performance.
It’s a great concept, but here’s the real question: How do you actually figure out your team’s Killer KPIs?
KPI Basics
Before diving into specifics, let’s nail down some key principles:
- Track Weekly Metrics
To adjust in real time, you need to measure activities weekly. While CFOs might grumble about disrupting their monthly routines, weekly tracking keeps CEOs focused on the future.
- Measure Recurring Activities
Choose KPIs tied to actions that happen every week. For example:
- “Number of speaking engagements” may not work if they’re infrequent.
- But “Number of speaking engagements initiated” works, as it’s a weekly activity
- Focus on Controllable Inputs
Pick metrics your team can control. For example:
- “Number of RFPs responded to” is actionable.
- “Value of contracts signed” is not, as it depends on external decisions.
Begin With the End in Mind
To find the right KPIs, start with the critical outcomes you expect from each Function in your business. Then, reverse-engineer those outcomes into weekly, controllable input metrics.
(Pro tip: Use the Function Ownership Chart™ from Summit OS to map out these outcomes. Download link at the bottom of this email!)
Reverse Engineer Your Inputs
Once you define outcomes, the right input metrics become obvious.
Examples of KPI Discovery:
- Visionary CEO Outcomes: Growing followers, increasing market share, and boosting business value.
- KPIs: “Number of blogs published” or “Number of strategic relationships touched.”
- Integrator Outcomes: Enhancing profit and optimizing cash flow.
- KPIs: “Number of coaching conversations” with Function Owners or “Number of keep-in-touch calls” with potential hires.
- Marketing Outcomes: Driving lead flow and boosting brand awareness.
- KPIs: “Number of website downloads” or “Number of social media engagements.”
How I Drive Awareness
As the visionary of the company, my primary outcome is to increase awareness of our coaching products—Summit OS® and Strategy OS®.
Right now, my weekly KPIs are:
- 3 tweets.
- 1 blog written.
- 3 book reviews requested.
To keep myself and my team accountable, I track these metrics using the Scoreboard Sketcher™. This tool provides a clear, visual representation of our progress, highlighting trends, gaps, and areas for improvement. Each Friday, we review our KPIs together, using the scoreboard to identify what’s working and what needs adjustment.
This approach ensures our focus remains sharp, and we can make data-driven decisions to stay on course. Am I perfect? Not yet. But the Scoreboard Sketcher keeps us aligned and moving forward.
Start Your Killer KPI Quest
Want to figure out your team’s Killer KPIs? Start by building a Function Ownership Chart for all leadership functions and sub-functions. Then work backward to identify the right metrics.
Ready to begin? Download your free Function Ownership Chart here and start driving performance today.
