Pick the right board metrics

Who this is for

Founder led lower-middle market companies with 5 to 50 million in annual revenue that want a clear view of performance and risk.

The quick answer

Track a small set that shows health and momentum. Revenue growth, gross margin, EBITDA, cash and cash conversion, pipeline and win rate, net revenue retention, on time delivery or service level, safety or quality if relevant, working capital turns, and covenant headroom. Show actual, plan, and trend.

The method in six steps

Select the core set
Financial. revenue growth, gross margin, EBITDA, cash, cash conversion cycle, and covenant headroom.
Go to market. pipeline value, win rate, net revenue retention.
Delivery. on time delivery or service level, quality or safety if relevant.
Working capital. turns for inventory or days for receivables and payables.
Define owners and rules
Assign one owner per metric. Write how each metric is calculated so it is consistent.
Build the display
For each metric show actual, plan, and a four period trend. Use a short comment and the next step when off plan.
Tie to decisions
Add thresholds that trigger actions. For example cash conversion below target triggers a terms review.
Set review rhythm
Add the board set to your weekly executive dashboard and include a monthly roll up for the board check in.
Refresh once a year
Remove metrics that no longer guide decisions and add those that do.

Example

A firm added net revenue retention and covenant headroom to the set. The board saw risks earlier and supported a pricing step that improved both margin and cash.

Pitfalls and fixes

Long lists. Keep the set short and predictive.
Vague formulas. Write how each metric is calculated.
Numbers with no owners. Add a name and a next step.

Checklist

Metric list with owners
Calculation rules written
Display with actual, plan, trend
Thresholds and actions
Review rhythm