Division heads often defend KPIs because someone once asked for them—years ago. The resulting pack lists twelve metrics per page while the general manager circles three in pen every month. Those three are the real KPIs; the rest are wallpaper.
Five questions before keeping a metric
- Who acts when it moves? If no one changes behaviour, demote it to appendix or retire it.
- Can we define it in one sentence? Ambiguous labels (“efficiency index”) erode trust faster than missing data.
- Is the source stable? KPIs tied to manual exports that break each quarter should not headline the pack.
- Does it pair with a decision? Revenue variance matters when pricing or capacity is on the agenda—not when the meeting discusses hiring alone.
- Would the GM notice if it disappeared for one cycle? If not, remove it.
The “top three” discipline
Ask each division head to name three figures they would stake their monthly narrative on. Consolidate overlaps firm-wide. You will usually end with eight to twelve firm-level KPIs—not forty.
Taiwan-specific nuance
Receivables ageing and supplier payment terms often deserve headline space here because cash timing shapes supplier relationships differently than in markets with longer standard terms. Do not copy KPI sets from overseas parent templates without checking local payment practice.
Reservation
KPI reduction feels risky to finance teams who worry auditors or parents will ask for retired metrics. Keep archived tables on a shared drive; leadership packs stay lean. Auditors rarely insist every historical chart appear in the Monday email.