KPIs are supposed to improve performance—

Marla Noel breaks down how to build KPIs that actually motivate people, align with strategy, and help you grow without turning measurement into a morale problem.

For business owners and department leaders, this episode cuts through the KPI noise and gets practical fast. Marla shares why the first number is often just an estimate, why employee buy-in matters more than perfection, and how one client went from aiming for 45 outreach touches to landing on a realistic 28 after the team defined what “outreach” actually meant. You’ll discover:

• How to introduce KPIs without triggering fear or resistance
• Why leading indicators often matter more than lagging results
• How to choose the right KPI count so everything important does not become nothing important
• What it means for KPIs to align from the company level down to managers and employees
• How to build a follow-up system so KPIs do not become “the flavor of the month”

Marla also shares practical examples for sales, client outreach, blog posts, contracts, gross margin, and net profit, plus the difference between stretch goals and numbers that are simply unrealistic.

If you’ve ever struggled to get your team to care about metrics, or worried that your KPIs are measuring the wrong things, this conversation gives you a clear path forward. She also points you to two helpful resources: Measure What Matters by John Doerr and Drama Free Management, by Marla Noel and Pete Fowler, which includes a KPI template you can use with your staff.

The big takeaway is simple: KPIs should drive focus, accountability, and growth—not confusion, fear, or box-checking. Perfect for founders, managers, and leaders who want measurement systems that people will actually use and trust.

Timestamps

00:28 – Why KPIs matter for business owners and managers
01:05 – How KPIs can scare employees if handled poorly
01:35 – Using a trusted business coach to introduce KPIs
02:05 – Starting with estimates when the right number is unknown
03:05 – Examples of financial and activity-based KPIs
03:39 – Defining what counts as outreach before setting the target
04:39 – Why 45 was too high and 28 became the stretch goal
05:39 – Leading KPIs vs. lagging KPIs
06:39 – Why leading indicators are more actionable
07:32 – Lagging metrics like sales, billable hours, and signed contracts
08:02 – Why three to five KPIs is usually enough
08:32 – Aligning KPIs with business strategy
09:32 – Why follow-up keeps KPIs from becoming a fad
10:14 – Monthly reporting, spreadsheets, and KPI software
11:14 – Reviewing KPIs with executives and employees
11:44 – Books Marla recommends for KPI planning
12:39 – Marla’s recap: keep KPIs useful, focused, and motivating