Most businesses do not measure too little. They measure too much, and most of it changes nothing. A good KPI is rare because it has to clear a few simple tests that a typical metric never does.

It has one clear definition

If two people can calculate the same KPI and arrive at different answers, it is not ready to be a KPI. Write the definition down in plain language, including the awkward edge cases, and make that the single version everyone uses.

It has an owner

Every number that matters should have a name next to it, someone who is accountable for it and can explain why it moved. A metric that belongs to everyone belongs to no one, and it quietly stops being trusted.

It is tied to a decision

The real test of a KPI is what you would do differently if it changed. If a number going up or down would not change a single action, it is interesting at best and clutter at worst. Track the few that would actually move your hand.

It can move, and you would notice

A good KPI is sensitive enough to respond to the things you control, and visible enough that a meaningful change gets noticed quickly. A number that only updates once a quarter rarely drives behaviour.

If you cannot say who owns a metric, what it means, and what decision it changes, it is not a KPI yet.

Cutting your list down to a handful of measures that pass these tests usually does more for clarity than any new dashboard. Fewer numbers, better understood, is almost always the right trade.