Re:Why KPIs are destroying businesses
by tomrod on Tuesday August 22, 2023 @07:45AM
(#37221333)
The general approach is: performance, when measured, improves; performance, when measured and reported, improves exponentially.
KPIs might be defined incorrectly, but their use is simple and straightforward for people to understand. This gives rise to Goodhart's Law, "when a measure becomes a target, it ceases to be a good measure." The best KPI is something that can't be gamed by those whose performance is being measured. This is probably impossible in practice.
KPIs might be defined incorrectly, but their use is simple and straightforward for people to understand. This gives rise to Goodhart's Law, "when a measure becomes a target, it ceases to be a good measure." The best KPI is something that can't be gamed by those whose performance is being measured. This is probably impossible in practice.