A good KPI is clear and defined to a specific area of the business needing improvement. Use SMART goals to keep them focused.
Pick KPIs that align with your strategic objectives and your market fit.
Different levels of management should have KPIs suited to their purview.
Consider what makes your business unique and make sure your KPIs reflect that.
Select KPIs you can achieve and ones you can inform with data.
Choose actionable KPIs. It does no good to measure something beyond your control.
Brainstorm with your team to determine what to measure and what criteria to use to inform your decisions. This helps establish buy-in.