Numbers That Matter: What Are KPIs and Which Ones Should Businesses Track?

KPI stands for Key Performance Indicator — the vital signs of your business. They tell you if your strategy is working, in real time.

What Makes a KPI?

A KPI is more than a number. It must be:

• Measurable: You can track it consistently.

• Actionable: It drives decisions.

• Aligned: It ties back to your goals.

Common KPIs Businesses Should Track

1. Gross Margin % → Are we pricing right and controlling direct costs?

2. Overhead Ratio → Are fixed costs in line with revenue?

3. Days Sales Outstanding (DSO) → How fast are customers paying?

4. EBITDA → Core profitability before debt/taxes.

5. Backlog / Pipeline → What’s in the hopper for the next 90–180 days?

6. Goal Achievement / OKR Completion % → How well teams are delivering against stated objectives.

How to Use KPIs

• Build a simple dashboard (not 30-page reports).

• Review weekly in leadership, department, and one on one meetings.

• Tie KPIs to accountability: who owns improving each one?

Bottom Line: KPIs take numbers from being “bean counting” to being a compass. They give owners visibility, teams alignment, and decisions traction.

👉 Not sure which KPIs matter most for your business? Book a free consultation with UnBean Numbers — we’ll help you choose the right vital signs.