Company KPIs: the ones that matter by department
If you had to choose only 5 KPIs to run your company, which would they be? Most managers can't answer without thinking for several minutes — and that's exactly why dashboards end up with 47 charts no one looks at.
The problem isn't lack of data. It's lack of focus. Each area has dozens of possible indicators, but only a few move the business needle. This guide is a filter: the KPIs that truly matter in each department, with concrete examples and benchmarks to pursue.
The list that follows is deliberately not exhaustive. I'd rather you measure 3 KPIs well and make decisions from them than measure 30 and act on none.
Sales: The 4 KPIs that define growth
1. Revenue vs Target
The most direct KPI. Closed sales in the period vs goal. Above 90% of target is acceptable, above 100% is strong, below 80% requires immediate intervention.
2. Pipeline by stage
Total value of opportunities at each funnel stage. If your proposal stage is small but prospecting is huge, your problem isn’t lead generation — it’s conversion.
3. Stage conversion rate
Percentage of opportunities that move from one stage to the next. Proposal-to-close above 25% is healthy. Below 15% indicates proposals aren’t reaching the right decision-maker.
4. Average sales cycle
Days from pipeline entry to close. 30-45 days for SaaS SMB is reasonable. 90-180 for enterprise. Watch the trend: lengthening cycles signal something is slowing purchase decisions.
Marketing: The 4 KPIs that connect to revenue
1. CAC — Customer Acquisition Cost
Formula: Total marketing and sales spend / New customers. CAC under 30% of LTV is healthy.
2. Channel ROI
Disaggregate return by acquisition channel. Without this, you might be doubling investment in a negative-ROI channel because the aggregate number looks fine.
3. MQL to SQL conversion
Formula: SQLs generated / MQLs generated × 100. 20-40% is acceptable. Below: marketing and sales aren’t aligned on what defines a good lead.
4. Qualified traffic (not total traffic)
Visitors with purchase intent. 10,000 visits with 95% bounce rate are worth less than 1,000 visits with 30% bounce rate and 4 pages per session.
Finance: The 4 KPIs that keep the company alive
1. Cash Flow
Money in minus money out. The most important KPI in any business. Positive with stable trend. Two consecutive negative months is a flashing red light.
2. MRR / ARR
Monthly and annual recurring revenue. 5-10% monthly growth for early-stage startups. 2-3% for mature companies.
3. Gross Margin
Formula: (Revenue - COGS) / Revenue × 100. SaaS: 70-80%. Services: 30-50%. Manufacturing: 20-40%.
4. Burn Rate
Cash the company spends per month. Runway (cash / burn rate) of 12-18 months is healthy. Under 6 months is danger zone.
HR: The 4 KPIs that measure team health
1. Turnover Rate (Attrition)
Formula: Departing employees / Total employees × 100. 10-15% annually is acceptable. Above 20% signals cultural or compensation issues.
2. Time to Hire
Days from opening a position to signed contract. 30-45 days for standard roles. Over 60 days indicates process bottlenecks.
3. eNPS — Employee Net Promoter Score
Likelihood of recommending the company as a workplace. Above 30 is good. Above 50 is excellent. Negative requires urgent attention.
4. Cost per Hire
Total recruiting spend / New hires. 15-25% of the position’s annual salary.
Operations: The 4 efficiency KPIs
1. Cycle Time
Time from process start to finish. Should decrease or stay stable. If rising, efficiency is dropping.
2. Defect / Error Rate
Percentage of defective results. Under 2% is excellent. Above 5% requires process review.
3. SLA Compliance
Percentage of deliveries completed within promised time. Above 95% is professional standard. Below 90% and customers notice.
4. Capacity Utilization
Percentage of total capacity being used. 70-85% is optimal. Above 90% leaves no margin for surprises. Under 50% means idle resources.
Summary: The 5 KPIs every company should watch
| # | KPI | Area | Frequency | Alert signal |
|---|---|---|---|---|
| 1 | Revenue vs Target | Sales | Weekly | <80% of target |
| 2 | Cash Flow | Finance | Weekly | Negative 2+ months |
| 3 | CAC | Marketing | Monthly | >30% of LTV |
| 4 | Turnover Rate | HR | Monthly | >20% annually |
| 5 | SLA Compliance | Operations | Weekly | <90% |
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