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by danaris 765 days ago
While it's absolutely true that KPIs or other clear, measurable metrics of success are objectively better than having no such metrics and just going off of vibes and gut-checks...

...it's important to remember that:

a) People who are bad at creating KPIs can absolutely still make them ill-defined and nebulous.

b) KPIs do not always measure the things that actually matter.

c) Indeed, it's (unfortunately) all too common to have KPIs measure only the things that matter to the people making the KPIs, and not the things that will actually make the organization successful. (For instance, making the stock price a KPI, whether directly or indirectly, through targeting specific visible results that are likely to improve the stock price while having disproportionately low benefits for the actual core business.)

d) Even if the nature of the KPIs are chosen well (ie, they're measuring the right things), the numbers being targeted for them can still be wildly unrealistic and lead to unnecessary stress.

e) Goodhart's Law[0] applies whenever you're creating metrics. You may need to either actively combat efforts to game the metrics, or rotate the precise things being measured periodically to ensure no one has the opportunity to optimize their output too well for a specific metric to the detriment of actual productive output.

TL;DR: KPIs and other ways of clearly communicating and measuring success are a necessary but insufficient component of a healthy workplace.

[0] https://en.wikipedia.org/wiki/Goodhart%27s_law