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by amirmc 4382 days ago
> "To be successful you set your overall KPI(s), then you forget about it and focus on smaller things that will over time incrementally add to your overall goal."

I don't see how this works in practice. Once you expose KPIs like this, then everything in your org works to increase them. Promotions probably get handed out on this basis. As you say, this leads to exploding cars and bad tools. The challenge (which you don't mention) is how you create an environment that doesn't hold the metrics higher than other things. I'd argue that values-driven orgs probably do this better but I'm not sure.

1 comments

Yeah that is the challenge. If I knew the right answer that solves it I would certainly share, but I dont.

What I try to do is talk about it over and over, and emphasize for each new initiative we roll out how we dont care about how it will impact the KPIs, we care about how it will impact our overall goals that the KPIs are trying to measure.

That said, #1 resistance point for most initiatives is still "how will affect the KPIs", so we are certainly far away from solving that problem.

Things we've tried to de-emphasize the KPI importance is going away from having an "exceeds" measure, now we are just "meets objective" or "doesnt meet objective", with "doesnt meet" set fairly low so that the people who like to min-max things dont have another clear target to min-max towards, and doing things like moving the focus to team oriented goals rather than individual goals to lower the link between KPIs and rewards, and instead linking individual rewards to general appraisals.