You’re Failing at KPIs (And How to Fix It)

February 13, 2025

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That’s all you need to make smarter business, career, and investing decisions today.

📢 Welcome to Five Wide – Your Daily Edge in Business & Wealth.Every weekday, I break down 5 key insights to help you build wealth, grow your career, and stay ahead.

📰 1️⃣ Inflation Accelerates in January

💡 What Happened? The Consumer Price Index (CPI) rose by 0.5% in January, exceeding the anticipated 0.3% increase. This marks the largest monthly gain in over a year, driven by significant price hikes in housing, food, and energy sectors.

📈 Why It Matters: Elevated inflation can erode purchasing power and impact investment returns. Persistent inflation may prompt the Federal Reserve to consider further interest rate hikes, affecting borrowing costs and economic growth.

⚡ Takeaway: Review your investment portfolio to ensure it includes assets that traditionally perform well during inflationary periods, such as commodities, real estate, or Treasury Inflation-Protected Securities (TIPS).

📰 2️⃣ Chevron Plans Significant Workforce Reduction

💡 What Happened? Chevron announced plans to reduce its workforce by up to 20% by 2026 as part of a strategic initiative to streamline operations and enhance profitability amid fluctuating oil prices and the global shift toward renewable energy.

📈 Why It Matters: This move reflects the broader energy industry's adaptation to changing market dynamics and the increasing emphasis on sustainability. Investors should monitor how such restructuring efforts impact company performance and the sector's evolution.

⚡ Takeaway: If you hold positions in energy stocks, assess the potential long-term impacts of industry shifts toward renewables and consider diversifying into companies leading in sustainable energy solutions.

📰 3️⃣ CVS Health Reports Strong Q4 Earnings

💡 What Happened? CVS Health reported robust fourth-quarter earnings, with revenue increasing by 8% year-over-year, driven by growth in its health insurance segment and retail pharmacy services. The company also provided an optimistic outlook for 2025.

📈 Why It Matters: CVS's performance underscores the resilience of diversified healthcare companies, especially those integrating insurance and pharmacy services. This trend may present opportunities for investors seeking stability in the healthcare sector.

⚡ Takeaway: Consider exploring investments in diversified healthcare companies that demonstrate strong growth potential and adaptability to evolving industry landscapes.

🔥 4️⃣ Global Markets React to Inflation Data

💡 What Happened? Global financial markets experienced increased volatility following the release of higher-than-expected U.S. inflation data, with major indices showing mixed performances as investors weighed the implications for future monetary policy.

📈 Why It Matters: Market volatility can present both risks and opportunities. Understanding the factors driving these fluctuations is crucial for making informed investment decisions and managing portfolio risk.

⚡ Takeaway: Stay informed about economic indicators and central bank policies. Maintaining a diversified portfolio can help mitigate risks associated with market volatility.

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🛠 Tool of the Day: Our 10-Week Coaching Program is designed to help you achieve your financial and professional goals through personalized guidance and actionable strategies.

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But Wait, There’s More:

Why You’re Failing at KPIs (And How to Fix It)

Most business owners either ignore KPIs or track too many. Both are a mistake.

KPIs (Key Performance Indicators) exist to measure what matters. But most businesses drown in metrics that don’t move the needle.

Here’s the truth: If you’re tracking everything, you’re tracking nothing.

Your business has one scoreboard—profits. Every KPI should tie back to that. But too many people focus on vanity metrics:

  • Website traffic (without conversions)

  • Social media followers (without engagement)

  • Total revenue (without profit margins)

Tracking the wrong KPIs leads to wasted effort. Here’s how to track what actually moves the business forward.

Step 1: Identify Your ‘North Star’ Metric

A North Star metric is the one number that best predicts long-term success.

For an e-commerce business, it might be repeat customer rate.For a coaching business, it might be conversion rate from free calls to paid clients.For a SaaS company, it might be monthly churn rate.

Pick one. If it improves, the business grows.

Everything else is secondary.

Step 2: Track What You Can Control

There’s a difference between lagging indicators (things that have already happened) and leading indicators (things you can change).

Example:

  • Lagging Indicator: Total revenue (you can’t change what’s already been earned)

  • Leading Indicator: Number of sales calls booked (this directly affects revenue)

If you track only lagging indicators, you’ll always feel behind. Instead, focus on the inputs you control—then the outputs will take care of themselves.

Step 3: Make KPIs a Ritual, Not a Report

Most companies track KPIs once a quarter (or worse, only when something goes wrong).

Winners track them weekly.

Set up a simple dashboard:

  • Red (Off Track)

  • Yellow (Needs Attention)

  • Green (On Target)

Make it a habit. Look at your numbers every Monday. Adjust your strategy before problems snowball.

Step 4: Celebrate the Wins

Tracking KPIs shouldn’t just be about fixing problems. It’s about recognizing progress.

Most businesses only focus on what’s broken. But if you never celebrate the wins, your team (or yourself) will burn out.

Here’s a rule: Every time you hit a KPI goal, acknowledge it.

  • Team hit a new revenue milestone? Shout it out.

  • Closed 10 new deals this month? Take a team lunch.

  • Improved customer retention? Send a thank-you email to your best clients.

Small wins create momentum. Momentum creates growth.

The KPI Formula for Growth

  1. Pick one North Star metric that actually drives the business.

  2. Track leading indicators so you control the outcome.

  3. Review KPIs weekly and adjust before it’s too late.

  4. Celebrate wins to keep yourself and your team motivated.

The best businesses don’t just set goals. They track, adjust, and celebrate every step of the way.

Start tracking what matters—your business (and your sanity) will thank you.

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