Built by On The Fly Ops

@Brett Hovanec

How to Use This Asset

Purpose: You can't manage what you don't measure. The KPI Tree shows how board-level revenue metrics break down into operational drivers that individual teams can influence. The Metrics Dictionary defines each metric so everyone uses the same calculation. Use this to:

• Align leadership on what success looks like (board metrics)
• Cascade metrics to individual teams (what they own)
• Ensure consistent definitions across organization
• Build dashboards that matter
• Hold teams accountable to the right numbers

Setup Steps:

1. Customize the KPI Tree for your business model (SaaS, land-and-expand, etc.)
2. Document your metrics in the Metrics Dictionary (formula, owner, frequency)
3. Build dashboards that visualize each metric
4. Publish monthly — celebrate when metrics improve, investigate when they decline
5. Cascade to teams — each team should know which metrics they influence

Key Rule: Don't create 50 metrics. Start with 5-7 that matter; add more as you scale.

KPI Tree: Visual Hierarchy

This diagram shows how board metrics (top) break down into operational drivers (bottom):

graph TD
    A[REVENUE GROWTH<br/>ARR<br/>$X → $Y YoY]
    
    A --> B[NEW SALES<br/>Logo+$<br/>$X]
    A --> C[EXPANSION<br/>+$ Upsell<br/>$Y]
    A --> D[CHURN<br/>-$<br/>$Z]
    
    B --> E[New Logos<br/># New<br/>Target: 20]
    B --> F[ASP/Discount<br/>ACV/Disc]
    
    E --> G[Win Rate<br/>75%+]
    E --> H[CAC<br/>$]
    
    C --> I[NRR<br/>%<br/>120%+]
    
    D --> J[GRR<br/>%<br/>90%+]
    D --> K[Product Quality<br/>Usage]
    
    I --> L[CAPITAL EFFICIENCY<br/>LTV:CAC Ratio<br/>3.5:1 target]
    
    style A fill:#e1f5ff
    style B fill:#fff4e1
    style C fill:#e8f5e9
    style D fill:#ffebee
    style L fill:#f3e5f5