Here is a rough process I would follow but it really varies a lot depending upon each business:
- Understand Company Objectives and Goals
- Have a clear Product Vision and Strategy that aligns with these goals/objectives
- Create higher level OKR's that can map to KPI's
- Determine the top KPI's the company is interested in driving/moving. Examples are: Business Performance KPIs: Customer counts, Customer / user acquisition, Retention Rate, Churn Rate, Revenue etc.
- Make a prioritized list of these KPI's you can measure. Example Revenue would map to MRR and so on
- Pick top 1-2 KPI's that you will meaningfully impact
- Ensure they are measurable in the given timeframe
- The roadmaps that PM's own should be aligned to these OKR's and KPI's
- Report on progress regularly