Ok, you clicked so here’s a little extra.

Let’s take Labor. Every company has some labor component. Is Labor a KPI? When you see a % or a $ amount, do you know if it’s good or not? Do you know the health of the company? You know based on your previous biases but not the actual current business. I would not count Labor as a KPI. I would count EBITDA as a KPI. Then I would use Cost of Goods Sold or Labor, the two your team can control the most, as directional. I would also need comparisons. How do these numbers match up against others in this industry or versus competitors?

A last note on KPIs. If it matters to you, it should matter to your team. If your team cannot access the KPI to report on their progress, then it’s either not a KPI or you need to create a report. They should be able to tell you how they’re doing. Not wait for you to tell them.