A Practical Guide to KPIs for Professional Services: The 3×3 Framework

In professional services, be it engineering, consulting, financial advisory, or beyond, measuring performance isn’t optional. Firms that thrive do so because they align day-to-day activity with long-term strategy. The challenge? Many firms either track too many metrics or focus on the wrong ones, leading to complexity without clarity.

That’s where the 3×3 KPI framework comes in. It simplifies performance management by focusing on three levels—business, team, and individual. In this guide, we’ll walk through each level, share anonymised examples from Client A and Client B, and show how to use a KPI dashboard to monitor performance in practice.

Business-Level KPIs: Measuring Firm-Wide Health

These KPIs reflect the overall health and strategic direction of your firm.

These metrics help leaders assess profitability, efficiency, and workforce stability. For example, Client B’s 3.0 labour multiplier shows strong revenue generation relative to labour costs.

From a succession and valuation perspective, these firm-wide KPIs are critical. Buyers, investors, and potential successors look closely at financial stability, profit margins, and retention rates when assessing long-term value and transition readiness.

Team-Level KPIs: Driving Department Performance

At the team or departmental level, KPIs measure how groups contribute to business goals.

These KPIs ensure teams are not just busy but effective. Client A, for instance, uses project debriefs to catch scope creep and pricing issues early.

Strong team KPIs also reduce key-person risk — a common barrier to succession planning. By embedding performance measurement at the team level, firms demonstrate resilience and scalability, both of which enhance long-term business value.

Individual-Level KPIs: Empowering Employees

Individual KPIs help employees understand their contribution to team and business success.

These metrics build accountability and encourage growth. A consultant with a 2.5× revenue-to-salary ratio, for example, is making a strong contribution to profitability.

When linked to incentive schemes or equity allocations, individual KPIs also strengthen employee ownership models. Staff can clearly see how their contribution ties to firm performance and, ultimately, to the value of their shareholding.

📊 A KPI Dashboard in Action

Here’s an example of how a KPI dashboard can bring everything together across all three levels:

This snapshot highlights progress and risks at a glance, making it easier for leaders to act quickly.

🧭 Final Thoughts: Making KPIs Work for You

The 3×3 KPI framework gives professional services firms a clear and scalable way to manage performance. By aligning KPIs across business, team, and individual levels, you create transparency, accountability, and strategic focus without drowning in data.

Here are some tips to implement the framework effectively:

• Benchmark targets using industry data (e.g., IBISWorld or sector reports).
• Review KPIs quarterly to keep pace with changing market conditions.
• Integrate KPIs into performance reviews and incentive structures.
• Link metrics to equity allocation in Employee Ownership Plans so staff are invested in results.

Start small, measure consistently, and refine over time. With the right KPIs in place, your firm can not only track performance but also accelerate growth.

👉 Want a head start? Contact us to discuss how the 3×3 KPI framework can be applied in your firm.