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KPI Tree

Business analysisDigital and data

Reference model

Building a KPI tree from objective to actionA sequence of 5 steps, read from the first to the last: 1, Main objective; 2, Level 1 KPIs; 3, Sub-KPIs; 4, Check the links; 5, Assign actions.Main objectiveState the single top-levelgoal the whole tree mustserve.1Level 1 KPIsChoose the few indicators thattogether show whether theobjective is being met.2Sub-KPIsBreak each KPI into thedrivers that influence it, soeach branch is measurable.3Check the linksConfirm each branch supportsthe one above it and look forgaps or overlaps.4Assign actionsGive each KPI an owner role, ameasure of success and a30/60/90-day horizon.5

A KPI tree illustrates the relationship between KPIs and business objectives.

About this model

A structured approach to mapping KPIs that shows their interconnections and contributions to strategic objectives.

Originator not stated.

How to read it

  • Start from the top with the main objective and branch down to specific KPIs.
  • Look for gaps or misalignments in the KPI hierarchy.

What this does

Visualizes the hierarchy of key performance indicators (KPIs) to show how they relate to each other and to business objectives.

When to use it

Use it when you need to clarify how different KPIs contribute to overall business goals and to ensure alignment across teams.

Not when: Do not use it when KPIs are not clearly defined or when there is no clear relationship between them.

What happens next

Develop a performance dashboard that tracks the identified KPIs.

Golden thread

Builds on ←

  • Business objectives
  • Performance metrics

Feeds into →

  • Performance dashboard

Use this tool, free

Sign in to open the worksheet. Your work saves as you type, the AI can draft the parts you have not filled in, and you finish with an analysis and a 30/60/90-day action plan.

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Drafted with AI and reviewed by Eccellere on 04/11/2026. Guidance, not advice: apply your own judgement.