Key Performance Indicator (KPI)

Select metrics that reveal whether you're achieving strategic goals to track progress and identify problems before they become expensive to fix.

Key Performance Indicator (KPI)

Key Performance Indicator (KPI)

definition

Introduction

Why it matters

How to apply it

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Growth orchestration

The cockpit that sits above your four growth engines. Individual teams can excel at their own metrics, but without orchestration they're musicians playing different songs. This is where everything comes together and where improvements in one engine amplify gains in another.

Explore playbooks

Growth team tools

Growth team tools

The wrong tools create friction. The right ones multiply your output without adding complexity. These are the tools I recommend for growth teams that move fast.

Compound growth

Compound growth

Small improvements multiply. A 10% gain across twelve metrics doesn't add up to 120% - it compounds to 3x growth. This is the mathematical engine behind systematic growth.

Growth strategy

Growth strategy

Four decisions that shape everything else. When growth feels harder than it should, the problem is usually here. Get these right and execution becomes much easier.

Growth rhythms

Growth rhythms

Without rhythm, effort becomes scattered and progress invisible. A consistent operating cadence keeps your team aligned and your growth system continuously improving.

Related books

Measure What Matters

John Doerr

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Measure What Matters

A clear guide to OKRs for growth teams. Write good objectives, choose key results and run cadences that stick.

Clockwork

Mike Michalowicz

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Clockwork

A clear way to design responsibilities and handoffs. Use time maps and simple dashboards to remove bottlenecks and protect focus.

Scaling Up

Verne Harnish

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Scaling Up

Practical tools for scaling a company. Use rhythms, scorecards and priorities to keep a growing team aligned.

Lean Analytics

Alistair Croll

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Lean Analytics

Pick the One Metric that Matters for your stage. Build lean dashboards and use data to decide the next best move.

Related chapters

1

The Growth OS (Operating system) explained

If you're joining a team that runs this operating system, you need to understand how it works without reading every chapter. This is the short version: what to expect from each cadence, how decisions get made, and how to contribute from day one.

2

How to decide what to track

Track what matters for growth decisions. Map key conversions, name events with clear conventions, and document tracking specifications.

Wiki

Growth mindset

Cultivate belief that skills and results improve through deliberate effort, treating setbacks as learning opportunities rather than fixed limitations.

P-value

Interpret experiment results to understand the probability that observed differences occurred by chance rather than because your changes actually work.

Churn rate

Measure the percentage of customers who stop paying to identify retention problems and calculate the true cost of growth in subscription businesses.

Pipeline coverage

Calculate how much pipeline you need relative to quota to ensure you generate enough opportunities to hit revenue targets despite normal conversion rates.

Pareto Principle

Focus effort on the 20% of activities that drive 80% of results, systematically eliminating low-yield work to maximise output per hour invested.

OMTM (One Metric That Matters)

Focus your entire organisation on the single metric that best predicts success at your current growth stage, avoiding distraction and misalignment.

Inbound Marketing

Attract prospects through valuable content that solves real problems, building trust and generating qualified leads who approach you.

Lead velocity rate

Measure the month-over-month growth in qualified leads to predict future revenue and catch pipeline problems before they impact revenue three months later.

Referral marketing

Turn satisfied customers into active promoters who systematically bring qualified prospects into your pipeline at near-zero acquisition cost.

Sales-led growth

Win customers through direct sales conversations where reps guide prospects from discovery to close with personalised solutions and relationship building.

Value proposition

Articulate the specific outcome customers get from your solution to communicate why they should choose you over doing nothing or using alternatives.

Customer data platform

Unify customer data from every touchpoint to create complete profiles that power personalised experiences across marketing, sales, and product.

Annual Recurring Revenue (ARR)

Track predictable yearly revenue from subscriptions to measure business scale and growth trajectory in B2B SaaS and recurring revenue models.

Constraint

Identify and leverage limitations as forcing functions that drive creative problem-solving and strategic focus.

Go-to-market strategy

Plan how you'll reach customers and generate revenue by choosing channels, pricing, and sales models that match your product and market reality.

Buyer persona

Document your ideal customer's role, goals, and challenges to tailor messaging and prioritise features that solve real problems they actually pay for.

Positioning statement

Define how you're different from alternatives in a way that matters to customers to guide all messaging and ensure consistent market perception.

Deal stage

Define pipeline progression steps to standardise how reps advance opportunities and give managers visibility into where deals stall or convert unexpectedly.

Growth drivers

Identify the fundamental factors that directly cause business expansion, concentrating resources on activities that generate measurable results.

Attribution model

Assign credit to marketing touchpoints that influence conversions to understand which channels work together and deserve budget in multi-touch journeys.