What do you report on?

In my experience this is a very common problem with businesses – I’ve seen it described as the ICE approach to KPI and measurement. “I” for identify everything that you can measure easily; C” for collect in all of the data; E is for “End up scratching your head and wonder what you’re supposed to do with all these numbers”! With the clients I work with, I always start at the top and work down from there. So if your overall business aim is profit (which isn't always the business objective even in the commercial sector), then profit is the your fundamental KPI - you could even say it is the only KPI. You then work through the value flow to give you the measures you need at each level. Each level contains the levers/metrics to explain the level above it completely. And you tendc only delve down to the next level of detail if there's something “wrong” (i.e. targets being missed) or you’ve got some new insight (e.g. new marketing channels/technology) or more opportunities to do better (i.e. market research suggest that opportunity is bigger than you thought). That automatically prioritises your measures and allows you to focus (and report on) metrics that really matter, ideally with a Red Amber Green dashboard as well. Otherwise you tend to get a mass of tables and figures that you’re never sure means you’re doing well, indifferently or badly. When there are explanations are needed, allows everyone focuses on the metric they want to rather what's really driving the business.