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by Alex_Bell 1037 days ago
I agree completely that discussing the size of KPIs without considering the company's strategy and its Balanced Scorecard (BSC) is meaningless. KPIs cannot be isolated metrics; they must be directly related to overall goals and strategic directions of the company. Without understanding what specific aspects of the business and tasks these indicators reflect, discussing their size becomes a futile activity.

Balanced Scorecards provide a holistic view of how different aspects of a company's activities relate to each other and to the overall strategy. They help identify causal relationships between different indicators and goals. It's important for leaders not only to define KPIs but also to clearly explain the logic behind their formation to KPI owners, and to demonstrate how these metrics fit into the context of the strategy and the BSC.

Unfortunately, a lack of information and understanding of this logic can lead to misinterpreting KPIs and, consequently, to misaligned behavior or a focus on irrelevant metrics. Therefore, it's crucial for leadership to actively educate KPI owners and help them see the bigger picture — how their work contributes to the achievement of the company's overall objectives.