From KPIs to KBIs: Measuring What Drives Firm Growth

Key performance indicators (KPIs) have been the foundation of firm dashboards and partner meetings for some time. Metrics like utilization, realization and revenue per full-time equivalent (FTE) give us a snapshot of past performance and financial health. But to focus on sustainable growth, we have to ask whether we’re measuring what matters most.

KPIs are helpful, but they’re inherently backward-looking. They tell you what happened, not why it happened or how to change it. If you want to influence the future, it’s time to start tracking the behaviors that lead to those results. 

Key behavioral indicators (KBIs) 

Key behavioral indicators measure the leading actions that contribute to desired outcomes. They focus not on the output, but on the inputs. In other words, they track what your people actually do to drive growth, improve client experience, develop talent and more. 

Where KPIs answer “How did we perform?”, KBIs answer “What did we do to get here, and what should we keep doing to improve?” 

Think of KPIs like reading the score of a game after it’s over, while KBIs are like tracking practice habits, strategy execution and in-game decisions that shape the outcome. KPIs tell you what happened, but KBIs tell you what to do next. 

If your team missed its growth target last quarter, your KPIs will confirm it. But KBIs might show you that only 30% of your team members held advisory conversations, or that partners and managers attended 20% fewer in-person networking events. 

Examples of translating KPIs into KBIs 

Let’s look at some common KPIs and their behavioral counterparts. 

Traditional KPI	Potential KBI
Revenue growth	Number of proactive outreach calls to clients per week
Realization rate	Percentage of engagements with clearly scoped fixed-fee proposals
Client retention	Number of value-added check-ins during the year with top 20 clients
Employee utilization	Hours blocked weekly for deep work or development conversations
Business development pipeline	Number of strategic partnerships or referrals initiated per quarter

By identifying the behaviors that lead to the desired results, you begin to shape outcomes intentionally. 

How to start using KBIs in your firm 

You don’t need to throw out your KPIs; just balance them with forward-looking metrics that focus on behaviors. Here’s how: 

Step 1: Identify the outcomes you want 

Start with the end in mind. Want more advisory revenue? Better client experience? Higher staff engagement? Define the result you care about first. 

Step 2: Identify the critical behaviors 

Work backward. What actions drive that outcome? Be specific. 

For example, to increase advisory revenue, team members may need to initiate at least one strategic conversation per week. To improve client onboarding, team members may need to complete all client touchpoints within a five-day window. 

Step 3: Make behaviors observable and trackable 

You can’t manage what you can’t see. Choose behaviors you can log, report on or discuss in one-on-ones or team meetings. Use your client relationship management (CRM), project management or time tracking tools to support the process. 

Step 4: Create accountability loops 

KBIs work best when they’re part of ongoing coaching and culture rather than a scorecard. Managers should reinforce the importance of behaviors, model them and connect them to results during reviews and regular check-ins. 

Step 5: Adapt over time 

As your firm evolves, your KBIs should too. What drives results today may not work as well tomorrow. Review and refresh regularly to keep behaviors aligned with firm strategy. 

Cultural change creates lasting results 

You reinforce what’s important when you begin measuring behaviors. People focus on what you track, and tracking behaviors communicates that how the work gets done is just as important as what gets done. 

To foster a culture of innovation, start tracking the number of ideas people share during meetings or brainstorming sessions. To empower managers to coach, track how frequently they hold development conversations. 

KBIs make values operational. They help bridge the gap between vision and execution. If you want to grow, adapt and lead, start by measuring the behaviors that drive transformation. 

Let’s keep our KPIs. But let’s also ask: What are our KBIs? And are we reinforcing the habits that will shape our future? 

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Jim Boomer is Shareholder and CEO of Boomer Consulting, Inc. and a nationally recognized strategy consultant for accounting firms. Named one of Accounting Today’s Top 100 Most Influential People, he leads several Boomer Circle peer groups and contributes regularly to leading industry publications.