You’ve heard the expression “what gets measured gets done”?
The purpose of KPIs is to ensure that what ought to be done gets measured so it gets done, i.e. promote the right behaviour. KPIs also provide a method for managers at every level to monitor performance.
KPIs apply equally to businesses large and small, to the Board down to individual departments.
KPIs therefore need to be “goal congruent” with the business's strategic goals.
Conversely, it is easy to set up KPIs that detract from the business’s goals, either
(a) Directly promoting the wrong behaviour
(b) Taking eyes off the main ball by not setting required KPIs
You have to very carefully consider what behaviour would result from each KPI, and have a set of KPIs that is goal-congruent overall.
If you are already using KPIs or other business measures, are they promoting the right behaviour for your business?
No comments:
Post a Comment