How many KPIs should a team have?

Usually three to five. More than that and none of them are really "key".

What makes a good KPI?

It is measurable, tied to a clear objective, owned by someone, and reviewed on a regular rhythm.

What is the difference between a KPI and an OKR?

A KPI tracks the ongoing health of something; an OKR drives a specific change over a set period. KPIs are the dashboard, OKRs are the route.

What is an example of a KPI?

Monthly recurring revenue, customer churn rate, average resolution time, or 90-day new-hire retention.

What is a leading vs lagging KPI?

A lagging KPI measures a result (revenue); a leading KPI measures an early driver of it (qualified pipeline). Good dashboards use both.

How do you choose the right KPIs?

Pick a few that map directly to the outcome you care about, can be measured reliably, and have a clear owner. Drop vanity metrics.

GlossaryGoals, OKRs & KPIs

KPI (Key Performance Indicator)

KPI stands for key performance indicator. It is a measurable value that shows how well a person, team, or company is performing against its most important ongoing objectives. "Key" is the important word: out of everything you could measure, KPIs are the handful that tell you whether the business is healthy.

Also known as: key performance indicator, kpis, performance indicator

Reviewed 3 October 2026

Key takeaways

A KPI is a metric chosen as a key indicator of ongoing success.
KPIs are the dashboard (health you watch); OKRs are the route (change you drive).
Good KPIs are specific, measurable, owned, and reviewed on a regular cadence.
Track a handful that matter, not every number you can collect.

Watch: KPI vs OKR: The Easy Way to Remember the Difference

KPIs are the dashboard (ongoing health); OKRs are the route (a change this quarter).

At a glance

What it is: A metric chosen as a key success signal
KPI vs OKR: Dashboard (health) vs route (change)
Cadence: Reviewed weekly, monthly, or quarterly
Related: OKRs, performance metrics

Why do KPIs matter?

KPIs keep teams focused on a few numbers that matter instead of dozens that do not. When a KPI moves the wrong way, it tells you where to look before the problem shows up in revenue.

Examples by team

Team	KPI
Sales	Monthly new revenue, win rate
Customer success	Net revenue retention, churn rate
Support	First response time, CSAT
HR	Attrition rate, time to hire, eNPS
Engineering	Deployment frequency, change failure rate

KPI vs OKR

KPIs measure ongoing health, like a car's dashboard. OKRs are for driving a specific change in a set period, like a route to a new destination. When a KPI slips, it often becomes the target of an OKR.

Worked example

An HR team tracks three KPIs: attrition rate, time to hire, and eNPS. Attrition jumps from 9% to 14% over two quarters. The team sets an OKR for Q3: "Make our first 90 days the best part of joining", with key results tied to onboarding and 90-day retention.

Frequently asked questions

How many KPIs should a team have?: Usually three to five. More than that and none of them are really "key".
What makes a good KPI?: It is measurable, tied to a clear objective, owned by someone, and reviewed on a regular rhythm.
What is the difference between a KPI and an OKR?: A KPI tracks the ongoing health of something; an OKR drives a specific change over a set period. KPIs are the dashboard, OKRs are the route.
What is an example of a KPI?: Monthly recurring revenue, customer churn rate, average resolution time, or 90-day new-hire retention.
What is a leading vs lagging KPI?: A lagging KPI measures a result (revenue); a leading KPI measures an early driver of it (qualified pipeline). Good dashboards use both.
How do you choose the right KPIs?: Pick a few that map directly to the outcome you care about, can be measured reliably, and have a clear owner. Drop vanity metrics.

See it in practice

Compare OKR and goal-setting software