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Fixing the Biggest Problem with Your KPIs
Too many KPIs kill focus. Here's why your startup needs one number to rally around—and how to choose the right one.

All startups set key performance indicators (KPIs) in their quest to achieve their goals and reach the top of the mountain. However, I’ve noticed that some startups go overboard with their KPIs. I’ve been guilty of this myself as both a founder and a coach. Over the years, I’ve learned how to keep things simple with KPIs.
A key performance indicator should be just that, one indicator. Too many startups want to pluralize KPI by setting up more than one indicator. This goes against the grain of trying to focus on just one indicator. After all, how can your focus be on the most critical indicator when you have set up multiple KPIs?
Back when he was running PayPal, Peter Thiel was a prime example of this approach. He said that he wanted everyone who reported to him to have just one number they were trying to reach. Therefore, he had no reason to speak to any of the people reporting to him about anything other than that one number, the one true performance indicator.
Understandably, some startups will want to be ambitious by proceeding on multiple fronts and having multiple KPIs. In some cases, employees may want to share additional insights they have and problems they believe they can fix. But those are just going to be distractions for the one indicator that’s been deemed the most important.
Don’t forget that the one number to reach for the single KPI is often difficult to reach. If it’s not, you may need to reset that number and create a more challenging and ambitious goal. Therefore, that one number and one indicator should require all of your attention. Having multiple KPIs will just needlessly spread out your attention, making it difficult to hit any of your targets.
The bottom line is that the more problems, insights, and ideas people talk about, the more distractions they have. By limiting themselves to one key performance indicator, startups can avoid those distractions and stay focused on what matters the most. Plus, if everyone at the company has just one number in mind, they will know how best to support each other, including employees in different departments. This will create the type of company-wide alignment that will help any startup build momentum.
After working with dozens of founders and startup CEOs, I understand the challenges startups face to get on the right path to achieving their goals.
With help from the Execution Accelerator from the Midstage Institute, your team can gain more structure and have clear goals, making them more accountable and efficient as your startup grows.
