How to Track What Matters (KPIs and KPMs)

Imagine flying a plane with no instruments. You don’t know how fast you’re going, how much fuel is left, or whether you’re even headed in the right direction.

That’s how most business owners and leadership teams run their organizations: flying blind with no data to guide them. But they always remain optimistic.

This is where KPIs and KPMs come in. These simple tools give you the visibility you need to grow your business with confidence. Let’s explore what they are, how they work together, and how to use them to track what matters.

What Are KPIs?

Key Performance Indicators — or KPIs — are big-picture numbers that tell you how your business is doing overall. Think of them like signposts, answering questions like: Are we actually making money? How much can we reinvest in the business? Is now the right time to buy new equipment or hire someone new? Can we afford not to?

KPIs show whether you’re moving in the right direction and give you a reliable way to measure success.

Examples of KPIs

Sales Growth – Revenue increase over time
Lead Conversion Rate – Percentage of leads that become paying customers
Customer Retention – Number of customers who continue doing business with you
Project Completion – Delivering projects within deadlines

What Are KPMs?

Key Performance Metrics — or KPMs — are the smaller numbers that feed into your KPIs. If KPIs tell you what’s happening, KPMs show you why. They help you see what’s working, what’s not, and where you can improve.

Examples of KPMs:

Average Response Time – How quickly your team replies to customers
Average Project Size – Revenue per contract or service agreement
Website Bounce Rate –Are people leaving our website without taking action?

Why Do These Numbers Matter?

KPIs and KPMs give you a clear picture of what’s going well and what needs attention. Instead of guessing, you’ll know exactly where to make adjustments. With the right numbers in front of you, you can make better choices, ultimately spending your time, money, and energy where it counts. When your whole team knows what you’re measuring and why, everyone can stay focused and work toward the same objectives.

How to Choose the Right KPIs and KPMs

Not every metric is worth tracking — choosing the right ones ensures you’re focusing on what truly drives your business forward. Here’s a simple way to approach the process:

Identify Business Objectives – Are you focused on revenue growth, efficiency, or customer satisfaction?
Pick with Purpose – Choose KPIs (the big numbers that show progress) that reflect your previously defined goals.
Break Down Your Goal – Look at the smaller metrics (KPMs) that affect those KPIs. These are the details you’ll track to stay on course.
Track and Adjust –Keep an eye on your numbers and adjust when needed. Business changes — your metrics should, too.

Bringing It All Together

High-performing businesses succeed by tracking, not guessing. KPIs and KPMs are more than just numbers — they are the foundation for smarter decisions, optimizing workflows, and growing what truly matters for your business. By keeping an eye on both the big picture and the smaller moving parts, you can turn complex data into actionable insights.

Don’t leave growth to chance — track what matters most and drive your business forward with clarity and purpose.

About The Author

Sarah Bronkema

Sarah Bronkema is a consultant specializing in Monday.com and No Code Integration solutions, helping businesses streamline workflows through automation. With over a decade of experience in building efficient systems, she combines her analytical mindset and tech expertise to simplify operations for growing companies. Her experience spans building a multi six-figure logistics agency and managing complex operations, where she honed her skills in optimizing processes. With a B.B.A. in Business Management, Sarah pivoted into consulting, combining strategy with technology to simplify operations and drive sustainable growth. She’s passionate about empowering business owners to work smarter, reduce internal workloads, and focus on what matters most.