Field notes
KPI glossaries that keep portfolio scorecards honest
Operating partners often inherit metric names from each company’s management team. Revenue recognition, churn, and gross margin can mean three different things across a single fund. A one-page glossary — signed off by finance and the deal team — prevents month-end debates that waste IC time.
Start with the ten metrics that appear on every scorecard. Define numerator, denominator, currency, and reporting lag. Note when a holding uses a non-standard calendar. Portalhorizoncore’s holdings scorecard work begins here, before any layout discussion.
Visual design should reinforce comparison, not individuality. Same column order, same traffic-light rules, same period labels. Brand flourishes belong on the cover, not inside the KPI grid where they distract from exceptions.
Refresh the glossary when you add a new sector to the portfolio. A consumer brand’s “active users” and a B2B software holding’s “active users” should never share a column without a footnote. Clarity protects both the GP’s credibility and the company’s management from unfair ranking.