Metrics and measurement
A key performance indicator (KPI) is the number by which a company function is judged.
The ones that survive a board meeting hold three properties at once: a denominator, so a ratio rather than a total; a declared perimeter, meaning business line, channel and comparison period; and a profit-and-loss line at the far end, a revenue or a cost that moves when the indicator moves. In the published articles the lesson is a sibling of this one: a quantitative indicator tells you how much an audience moves, and the reasons it moves live in qualitative data.
An example
A hundred leads can be worth less than twenty. An indicator that counts leads generated leaves that difference invisible; the average value per signed contract shows it, and that is the number the finance department recognises as its own.
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