Define KPI Framework for Management

Business Context

NotionHub is a B2B SaaS collaboration product used by small and mid-sized teams for docs, tasks, and internal knowledge sharing. The executive team is preparing for quarterly planning and disagrees on which metrics should drive management decisions after mixed performance last quarter.

Metric Scenario

In Q2, revenue grew from $24.0M to $25.2M (+5%), but new customer acquisition fell from 1,200 to 1,020 (-15%). Trial-to-paid conversion declined from 18% to 15%, while logo retention improved from 88% to 91%. Weekly active teams rose from 42,000 to 46,000 (+9.5%), but average weekly documents created per active team fell from 14.2 to 12.6 (-11%). NPS increased from 41 to 47. The CEO wants a clear view of which metrics should be used for day-to-day operating reviews versus longer-term strategic decisions, and how data should inform trade-offs between growth, engagement, and retention.

Requirements

1. Define a management KPI framework for NotionHub, including one north star metric and 4-6 supporting KPIs.
2. Classify each metric as a leading or lagging indicator and explain when management should use it.
3. Explain how you would interpret the conflicting Q2 signals and what additional decomposition you would do before recommending action.
4. Identify which metrics should be reviewed weekly, monthly, and quarterly.
5. Propose 3 concrete management actions if the company prioritizes sustainable growth over short-term revenue.

Data Available

• workspace_activity: workspace_id, user_id, event_date, docs_created, tasks_completed, comments_posted, active_flag
• subscriptions: workspace_id, plan_type, trial_start_date, conversion_date, mrr, renewal_date, churn_date
• acquisition_funnel: source, visits, signups, trials_started, paid_conversions
• nps_responses: workspace_id, response_date, score, segment
• account_dim: workspace_id, company_size, industry, region, signup_date