Relying only on your gut when making decisions is an obsolete strategy in business. Making decisions based on data is vital nowadays.
To be able to track the health of the business and drive impactful decisions you need to track a bunch of different metrics across the company. They will be related to Finance, HR, Product, Engineering, etc.
Ideally, you collect metrics on unified dashboards for every team or department on a single platform or SaaS. Less ideal — you check those in different systems.
Metrics are key when you plan goals. Basically, you define a desired result for particular metrics within the goal. That is called a KPI (Key Performance Indicator).
Tracking qualifiable metrics is as important as quantifiable ones.
Depending on the size of your business you would want to track from 1 to 20 metrics per business category (Finance, HR, Product, Engineering, etc.), product or team.We’ve also found metrics like the Magic Number, LTV to CAC and the Rule of 40 to be helpful financial indicators.