The start of a new year is a natural checkpoint for most business owners. It’s a moment to step back, evaluate what worked in 2025, and determine how to position your company for a stronger, more intentional 2026.
Reviewing last year’s business performance isn’t just about looking at numbers or identifying what went well. The beginning of the year is a natural time to objectively measure your performance to ensure your long-term strategy, team, financial systems, tax planning, and risk protection are all on track to move you in the same direction.
At Ensign Partners, we encourage clients to use the beginning of the year not simply to “set goals,” but to define meaningful, measurable Key Performance Indicators (KPIs) that guide better decisions across every part of the business. Using the previous year as a baseline and a learning guide, you can realistically define what success should look like in 2026.
Here are some pointers on how to conduct a strategic 2025 review that helps you set smarter KPIs that drive results in 2026.
1. Start With a High-Resolution Review of 2025
Before establishing KPIs for the year ahead, owners need clarity on what actually happened in 2025. The purpose of the review is not to criticize or celebrate — it’s an honest assessment that allows you to improve in the coming year.
- Financial performance: Revenue growth vs. projections, gross margins, cash flow cycles, and profitability.
- Operational performance: Delivery timelines, production efficiency, employee output, and client retention.
- Tax efficiency: Missed deductions, timing issues, year-end opportunities, and law changes including OBBBA.
- Risk and insurance readiness: Coverage adequacy, claims history, and operational exposure gaps.
- Legal and compliance stability: Operating agreements, employment practices, contracts, and governance updates.
This full-spectrum review creates a reliable baseline and highlights which KPIs matter most for the coming year.
2. Build KPIs That Support Your Long-Term Strategy
KPIs should influence decisions and behavior. Rather than vague targets, use specific, measurable goals tied directly to your future growth.
Financial KPIs
- Improve gross margin by 3% by Q4
- Reduce accounts receivable days from 42 to 30
- Grow recurring revenue by 15%
- Build three months of operating reserves
Tax KPIs
- Implement a 2026 tax strategy before Q2
- Increase tax-advantaged retirement contributions
- Capture all available R&D and depreciation benefits
Risk & Insurance KPIs
- Conduct a mid-year coverage review
- Reduce workers compensation incidents by 20%
- Implement a business continuity plan
Legal KPIs
- Update operating agreements by March 31
- Complete annual compliance review
- Standardize vendor contracts
Assigning timelines creates accountability and keeps priorities visible throughout the year.
3. Make KPIs SMART — Then Share Them
- Specific
- Measurable
- Actionable
- Realistic
- Time-bound
KPIs should be visible across leadership and ownership teams so alignment and accountability remain consistent.
4. Integrate KPIs Into Your Planning Rhythm
- Monthly pulse-check meetings
- Quarterly deep-dive reviews
- Mid-year strategic recalibration
- Year-end review and planning
This rhythm keeps strategy proactive instead of reactive.
5. Use KPIs to Drive Cross-Department Coordination
- Legal supports tax strategy
- Insurance protects financial planning
- Financial planning drives compensation and tax efficiency
- Tax strategy informs reinvestment and succession planning
This coordinated approach is why Ensign Partners integrates advisory services under one unified strategy.
Start 2026 with Intentional, Coordinated Targets
January is the ideal time to refine strategy and build momentum for the year ahead. When you break down 2025 performance thoughtfully, you gain the clarity needed to accelerate success in 2026.
If you would like support measuring performance and building actionable KPIs across legal, insurance, financial, and tax planning, the Ensign Partners team is ready to guide you. Contact us today to schedule a discovery conversation.
Here’s to building a stronger, smarter, and more coordinated 2026.