flexiblefullpage - default
interstitial1 - interstitial
Currently Reading

Understanding the Heart of Every Business: KPIs

billboard -
Thought Leadership

Understanding the Heart of Every Business: KPIs

In less than two minutes, learn the importance of KPIs, concrete examples, how to incorporate them into your business, and how to break KPIs down for greatest impact.

By Brian Gottlieb May 23, 2022
kpi meaning
what does kpi mean

In a new series, home improvement industry leader Brian Gottlieb will share quick tips and must-knows for home improvement business owners. In this first episode of Mentoring Minute, Gottlieb talks KPIs:


At the heart of every organization is something known as a key performance indicator or KPI. 

So what is a KPI and how does it relate to the home improvement industry? 

The Meaning of KPIs

First, let's start as if we're in the hamburger business: Suppose you have a little hamburger stand and during lunchtime you hope to flip 500 hamburgers between the hours of 11 am and 2 pm. 

One KPI you might want inside of your hamburger stand is staffing. How many people do we need during these hours in order to keep up with customer demand? And maybe at the end of the day you hope to sell $5,000 worth of hamburgers. A KPI for that would come in when closing out the cash register: when I count the money in the drawer, how much did we sell? 

RELATED: How to Measure Customer Satisfaction

These are super simple KPIs for hamburger stand, but in the home improvement industry, the KPIs should be that simple too. 

What a KPI does is it aligns organizational performance with individual and team performance. 

Breaking Down KPIs

What happens in most organizations is that the CEO of the company typically knows what numbers are important, but we don't want the numbers to live just with the CEO. What we want to do is to drive those numbers down throughout the organization so they live with the people that are closest to the customer.

The more the people closer to the customer know whether the hamburger stand was profitable, or whether the hamburger stand was staffed properly, the more successful a company you're going to have. 

My suggestion is this: take your yearly goals by department, boil it down into monthly goals, and then drill it down to a daily goal. Let the people closest to your customer know what their daily goal is—that's their KPI. 

It’s easy to find, easy to track, and it will make your business a whole lot more profitable.

RELATED: Tech Talk: 20 Questions with Brian Gottlieb



written by

Brian Gottlieb

Brian Gottlieb is the founder of Tundraland Home Improvements and current CEO of Renewal by Andersen of Greater Wisconsin. 

Related Stories

Do You Have a Healthy Marketing Mindset?

Use your marketing calories wisely and form healthy habits today to keep your business in shape

Do You Have Your Act Together?

These five indicators will check in on you and the health of your company

10 Winning Behaviors of a Great Manager

As a leader, guiding your managers to success is imperative for the success of a company

Does Encouragement Really Matter?

Home improvement industry leader Brian Gottlieb shares the importance of encouragement for any business

Are You a Farmer or a Hunter?

Industry advisor Mark Richardson says that over the last year, there’s been a major shift in the remodeling business from a farming mentality to a hunting skill set

A Stressful Purchase: Remodeling in Times of Uncertainty

How should remodelers react to anxious consumers? Director of Content Erika Mosse shares her experience

Stepping Back: Selling My Company to Employees

A remodeler shares the details of selling his company to two employees  

A Letter to Your Clients: 10 Ways to be a World-Class Client

Mark Richardson flips the script, offering insights into what makes a good client and ways remodelers can help

5 Tips for Successful Performance Reviews

If you want to peek into a successful business, look inside the minds of its people

Are Your People Burned Out?

Current conditions make for easy employee burnout—here’s how to recognize it and react

boombox1 -
native1 -

More in Category

native2 -
halfpage1 -