The indicator has value, formula, period and goal.

CONTROLA ENGINE · 01/03

Each key performance indicator (KPI) gathers value, formula, period and target in the same table. The example follows the cost of customer acquisition (CAC) to show what changed before discussing what to do.

The question defines which indicator enters the follow-up.

See the five steps Back to the Controla Engine ↖ OBSERVED updated 09:12 CAC · July R$ 126 MEDIA R$ 18,900 ÷ NEW CUSTOMERS 150 = R$ 126 FORMULA R$ 18,900 ÷ 150 TARGET R$ 108 PERIOD July PROJECTION R$ 132 fact projection Period, formula and target make the KPI comparable. 01 Indicators and metrics Period, formula and target together. 02 Alerts and deviations The alert separates fact from projection. 03 Sources and traceability Origin and transformation tracked.

FIVE STEPS

Period, formula and goal make KPI comparable.

01 · THE QUESTION

Start with the question that needs an answer.

The question defines which behavior deserves monitoring and avoids a list of unused numbers.

Locating the drop in the funnel requires weekly sales conversion. Tracking support capacity requires daily response time. Each metric states who owns the decision it supports. 01 BUSINESS QUESTION CANDIDATE KPI GUIDED DECISION 01 · THE QUESTION

02 · THE NAME OF KPI

Name the observed behavior.

Recurring revenue, margin and response time measure different things. The definition states that difference.

Sales conversion is sales divided by opportunities in the week. Support provides the queue; billing and contracts provide the active base. Each name carries its unit, window and source before comparison. 02 DEFINED KPI MEASURES MARGIN OPEN FORMULA SUPPORTED TARGET PERIOD CURRENT MONTH 02 · THE KPI NAME

03 · OPEN FORMULA

Open the formula and terms.

Each portion shows the origin and treatment used. If a term is missing, the calculation is marked as partial.

CAC opens as R$ 18,900 divided by 150 new customers. Each value points to the source that supplied it and the reading timestamp. Without a source for a term, the calculation remains partial and the gap stays visible. 03 SOURCE INVOICES SOURCE COSTS REVENUE TERM A COST TERM B OPEN CALCULATION LINKED KPI 03 · OPEN FORMULA

04 · TARGET AND PERIOD

Set goal and period at the same reading.

The comparison uses the actual value and target for the same time window. A monthly value stays separate from a weekly target.

The R$ 126 CAC is compared with the R$ 108 target approved for July. The period from July 1 to 31 applies to spending and new customers. Both readings use reais per new customer. 04 OBSERVED WITHIN WINDOW TARGET WITHIN WINDOW SAME PERIOD WINDOW COMPARE GAP 04 · TARGET AND PERIOD

05 · FRESHNESS AND TREND

Accompany recency and trend.

The state of the data shows whether the reading is updated, delayed, conflicting or absent before displaying a projection.

Within the KPI window, the source responds and the number becomes fit for comparison. Two incompatible sources leave the cause unresolved rather than being averaged. The R$ 132 close estimate applies only while the observed pace continues. 05 UPDATED FRESHNESS OBSERVED VALUE CALCULATED TREND FUTURE PROJECTION 05 · FRESHNESS AND TREND

ISOLATED NUMBER AND CONTEXTUALIZED KPI

Period, formula and target change how the same value is understood. The difference is the context accompanying the analysis. ISOLATED NUMBER CAC · R$ 126

Without a time window, formula, or target, the value looks complete but still leaves the question unanswered.

no period no source no comparison CONTEXTUALIZED KPI CAC · July · target R$ 108

The calculation shows media, new customers, freshness and the difference from the target for the same period.

visible formula sources declared marked gap

ANATOMY OF A KPI

Choose a part and see what it answers. The reading changes within the same frame. One explanation is active at a time. value formula target period freshness projection VALUE R$ 126 FORMULA R$ 18,900 ÷ 150 TARGET R$ 108 PERIOD 1 to 31 July FRESHNESS updated 09:12 PROJECTION R$ 132 SELECTED PART R$ 126

Cost observed per new customer in the selected period.

METRIC CATALOGUE

Each metric declares its calculation, source, period, and use. The catalog describes how each value is calculated and used instead of selecting a KPI by name. Contribution margin FORMULA (revenue minus variable costs) ÷ revenue SOURCES orders, costs, and fees PERIOD AND USE monthly · track what remains CAC FORMULA ad spend ÷ new customers SOURCES campaigns and orders PERIOD AND USE monthly · compare acquisition Recurring revenue FORMULA active subscriptions in the period SOURCES billing and contracts PERIOD AND USE monthly · track the active customer base Sales conversion FORMULA sales ÷ opportunities SOURCES customer relationship management (CRM) system and orders PERIOD AND USE weekly · identify a drop in the funnel Response time FORMULA total time ÷ interactions SOURCES support queue PERIOD AND USE daily · track capacity

DATA FRESHNESS

State comes before interpretation. Freshness and conflict change how strongly an analysis supports a decision. FIT FOR COMPARISON Updated

The source responded within the window defined for the KPI.

COMPARISON WITH QUALIFICATION Delayed

The last reading was outside the expected window.

OPEN CAUSE Conflicting

Two origins deliver incompatible values for the same term.

WITHOUT FILLING BY ASSUMPTION Missing

A required portion did not arrive and the calculation remains partial.

METHODS OF COMPOSITION

The method links each term to its corresponding source type. Each source may supply part of the calculation. Availability depends on sources configured in the business context. Orders revenue, new customers and average order value TRANSACTIONAL SOURCE Campaigns investment, reach and attributed conversion MEDIA SOURCE Finance costs, fees and payments ACCOUNTING SOURCE Support queue, response time and resolution OPERATIONAL SOURCE

ENGINE BOUNDARIES

Controla follows the effect and returns the result. He doesn't execute the change on his own. 01 Conecta

It forms the context with visible origin, access and gaps.

02 Planeja

Compares paths and delivers a route for decision.

03 Age

Transforms the approved route into work and records the result.

04 Controla

Tracks the effect and returns the result to the context.

NEXT CHAPTER

The contextualized KPI allows identifying the deviation.

See how trend, limit, and evidence form an alert without turning projection into fact.

Go to Alerts and Deviations