When we measure the success or failure of a business we all generally look to profit as a starting point. Put simply, profit is your income less your expenses. So a positive number generally makes us feel warm and fuzzy whereas a negative number we all start to run around and wonder why. And that's the problem. The Profit measure is historical data and usually by the time the number is determined the horse has already bolted and the damage may have already been done.
The Profit number is the end result of your strategies and tactics, after all that effort it provides the ultimate report card on your business. The problem is, Profit, is not a driver in many, many businesses, as previously said, it is the result of all your operational hard work and the strategic direction you have chosen to push your business.
So is it a good KPI to monitor? - no is generally the answer to that question. There are usually a handful of other measures that push that Profit result. It is those numbers that matter. Each business is different. Even like businesses will have differing KPIs largely due to strategic intent. KPI's look into the numbers of your business, and those numbers go beyond they standard financial key performance indicators.