KPI (Key Performance Indicator)
A quantified metric that tracks progress toward a strategic objective. Effective KPIs are specific, measurable, achievable, relevant and time-bound. A high-performing dashboard contains fewer than ten priority KPIs.
In practice
KPI proliferation is a common management anti-pattern: when everything is a priority, nothing is. The discipline is to identify the three to five metrics that, if they move, mechanically pull financial results. For a SaaS: ARR, churn, NRR, CAC payback, gross margin. For a franchise network: active franchisee count, average revenue per outlet, contract renewal rate.