We scan new podcasts and send you the top 5 insights daily.
While Key Performance Indicators (KPIs) measure past results, Cultural Performance Indicators (CPIs) like 'trust flow' or 'decision latency' quantify the human conditions that predict future outcomes. Paired together, they provide a complete view of systemic health.
Financial results are a downstream outcome. The true upstream driver is a company's culture—its talent density, hiring practices, and incentive systems. A strong culture creates a reinforcing feedback loop that attracts talent, improves decisions, and fuels compounding for decades.
DEI metrics track inputs like representation and training completion ("who is in the room"). In contrast, belonging metrics measure the output: whether every employee can perform at their best. This provides a direct link to productivity, innovation, and retention that input metrics miss.
Go beyond obvious metrics. Measure rep confidence—their belief and authenticity on calls—as a leading indicator of success. Also, measure velocity as the reduction of friction across the entire customer journey, from lead to successful onboarding, not just a simplistic 'time-to-close' metric. These qualitative measures are key.
Focusing on metrics like '40 calls a day' leads to burnout. Modern sales leaders should measure team well-being and the ability to avoid overwhelm as primary KPIs. A psychologically healthy team is more profitable than a team purely focused on volume.
Most HR metrics are lagging indicators like turnover or financial results. Research identifies employee connection as the key *leading* indicator that creates a causal chain: strong connection drives higher engagement, which improves retention, and that stability ultimately leads to greater profitability.
Don't measure momentum solely with metrics like revenue. At its core, it's a shared state of mind and belief system within the team. Its true strength is determined by how many people actively participate in that belief, not just by the leader's individual optimism.
Don't wage a direct war on familiar but flawed metrics. The politically savvy approach is to introduce new, more insightful KPIs alongside them. As the new metrics prove their superior value in driving decisions, the legacy ones will naturally become obsolete and be outgrown.
Tom Bilyeu argues "emotional safety" is the cornerstone of a great culture. He suggests tracking unconventional KPIs: the frequency of laughter and physical expressions of camaraderie. These are leading indicators of trust and psychological safety, which are essential for high-performing teams.
Open and click rates are ineffective for measuring AI-driven, two-way conversations. Instead, leaders should adopt new KPIs: outcome metrics (e.g., meetings booked), conversational quality (tracking an agent's 'I don't know' rate to measure trust), and, ultimately, customer lifetime value.
Solely measuring a team's output fails to capture the health of their collaboration. A more robust assessment includes tracking goal achievement, team psychological safety, role clarity, and the speed of execution. This provides a holistic view of team effectiveness.