Ten Common Reasons Why Organizations Get Their Measures Radically Wrong
- Measuring too much e.g. aiming a service level to all customers when we should be focusing effort on key customers
- A lack of connectivity with the organization’s critical success factors
- Treating all measures as KPIs
- KPIs being driven by performance related pay
- A tendency to over rely on financial measures
- Relying too much on past measures
- Cherry picking measures from KPI databases
- Mixing measures with targets, initiatives and milestones
- A few vague words does not make a performance measure e.g. customer loyalty program.
- Designed by untrained staff
Source: Extracted from
Key Performance Indicators – developing, implementing and using winning KPIs (4th Edition)
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