KPI (Key Performance Indicator)
A measurable number used to guide decisions and evaluate progress. The first step in the process is choosing a KPI that can be measured periodically.
Definition
A measurable number used to guide decisions and evaluate progress. The first step in the process is choosing a KPI that can be measured periodically.
More context
A KPI is the measurable “north star of the cycle”—the number you are trying to move with experiments. A good KPI is measurable at the cadence you operate (often weekly) and tied to business outcomes.
Why it matters
Without a KPI, you cannot evaluate experiments, prioritize rationally, or compound learning.
How to use it
Pick one KPI per cycle, define it clearly, assign ownership, and use it to judge experiments and learnings.
Common pitfalls
Choosing KPIs that lag too much for iteration, or using KPIs that don’t connect to OKRs/business goals.
Related terms
- OKR (Objectives and Key Results) — A goal-setting method that connects an Objective (what you want) to Key Results (how you measure progress). Used to steer experiments toward meaningful outcomes.
- KPI Definitions — A shared set of definitions for metrics like “lead” so different teams (e.g. marketing and sales) mean the same thing when they talk about numbers.
- Experiment — A test designed to create learning and move a KPI. An “optimal experiment” is tied to OKRs, measurable, learning-focused, and executable within a short cycle (e.g. a week).
- Testing cycle — A recurring cadence (often weekly or biweekly) where you run the four-phase process end-to-end and document learnings.