KPI Definition Framework

A structured KPI framework with formulas, owners, targets, and data sources that makes every metric unambiguous and accountable.

Best For

•A RevOps lead standardizing how 'active customer' and 'expansion revenue' are calculated across sales and finance before a board update
•A new head of customer success defining leading vs. lagging KPIs for their team's first quarterly review
•A product ops manager flagging which proposed KPIs have no reliable data source before committing to them in an OKR

Prompt Template

Define a complete KPI framework for [TEAM_OR_FUNCTION, e.g., the customer success team / the product organization] at [COMPANY_NAME]. Business objective this framework serves: [BUSINESS_OBJECTIVE]. For each of the following proposed KPIs: [KPI_LIST], provide a structured definition containing: (1) KPI name and plain-English definition (what does it actually measure?), (2) Calculation formula, exact formula using available data fields, (3) Data source, which system or table this comes from, (4) Measurement frequency, how often it should be calculated (daily, weekly, monthly), (5) Target, current baseline: [CURRENT_BASELINE], target value: [TARGET], and timeframe, (6) Owner, who is accountable for moving this number, (7) Leading vs. lagging, classify each KPI and explain why, (8) Relationship to other KPIs, does this metric drive or correlate with another? After defining all KPIs, add a "KPI hierarchy" section showing how the individual KPIs roll up to the top-level business objective. Flag any KPIs where data is not currently available or reliable.

Pro Tip

Ask explicitly for the leading-vs-lagging classification and the KPI hierarchy rollup, since these are the two sections most templates skip and where alignment usually breaks down.

Example Output

A sample of what this prompt produces once you fill in the placeholders.

KPI: Net Revenue Retention. Definition: revenue from existing customers this period divided by revenue from the same cohort last period. Data source: billing table joined to customer_id. Baseline: 96%, target: 108% within 2 quarters. Owner: Head of Customer Success. Classification: lagging, since it reflects churn and expansion decisions made months earlier.