How many KPIs should we track?
Five to eight. Enough to cover cash, margin and the leading indicators of your model — few enough that every one gets attention.
KPI Reporting
Every business has five to eight numbers that predict its next quarter. KPI reporting is the craft of finding yours, measuring them honestly from the books, and reviewing them on a rhythm that changes behaviour — not building a dashboard with forty gauges nobody trusts.
Dubai-based management accounting for decision-ready numbers.
Good KPI sets are small (5-8), balanced between leading indicators (pipeline coverage, quote conversion, utilisation booked ahead) and lagging results (gross margin, collection days, revenue per head), precisely defined, and sourced from systems rather than manual gathering. The test of the set: when a KPI moves adversely, is it obvious who acts and how? If not, it's decoration.
Template KPI lists produce template insight. The right set falls out of how your business actually converts effort into cash: services firms live on utilisation, realised rates and collection days; traders on stock turns, margin by SKU and sell-through; contractors on backlog coverage and project margin drift. Pick the metrics whose movement forces a specific hand.
KPIs die of definitional drift — three people computing 'margin' three ways — and of manual assembly that quietly stops. Each metric gets a written definition (formula, source, timing) and an automated or near-automated pull from the accounting and operating systems. If the ledger can't produce it, fix the ledger before dashboarding the guess.
A dashboard glanced at is entertainment. The operating rhythm — weekly pulse on the fast metrics, monthly review of the full set, each metric owned by a person who must speak to its movement — is what converts measurement into management. Adverse move → named owner → committed action → checked next cycle.
Five to eight. Enough to cover cash, margin and the leading indicators of your model — few enough that every one gets attention.
Lagging metrics report what happened (margin, revenue); leading metrics predict what's coming (pipeline coverage, bookings, utilisation ahead). A good set has both.
The financial ones should. Operational metrics join from your CRM or ops systems — and where the ledger can't produce a number cleanly, that's a books problem to fix first.
The person who can act on it — sales metrics with the sales lead, collection days with finance, utilisation with delivery. Unowned metrics don't move.
Yes — definitions, data plumbing from your systems, the dashboard itself, and the review rhythm that keeps it alive.
We will find the handful of numbers that predict your quarter, wire them to real data, and build the rhythm that makes them move.