While most businesses track key performance indicators (KPIs) to some extent, the question to ask yourself as a leader is whether you are tracking the correct metrics. Are your KPIs giving you a general report of the health of your business, or do they pinpoint progress in a specific area that is critical to growth?
Once you have the right data, the cadence for reviewing and sharing these metrics is key to using them to take action. Formal processes around reviewing and sharing KPIs communicate progress toward goals. More importantly, they can signal that things are getting off track.
A survey in late 2019 asked respondents to share the top five KPIs they use to measure the health of their businesses. Respondents provided more than 1,900 unique KPIs.
Unsurprisingly, the following KPIs topped the list:
3. EBITDA (earnings before interest, tax, depreciation and amortisation)
4. Gross margin
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