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Start treating KPIs as a Scoreboard and not a Hobby

How many KPIs do you normally find on a score board?

Two – the score and the remaining time.

Why?

Because in the end that’s all you need to know!

Where do we stand right now and how much time do we have to improve on it to reach our target.

A scoreboard is current, easily measured and understood and leading in the sense that it tells you what you achieved vs what you still need to achieve in a given time.

In business way to often we treat KPIs as a Hobby. We create them because they spark our interest, we watch them go up and down. They keep us buy, they make for interesting conversation and they entertain us. A perfect definition of a Hobby.

What they don’t do in most cases is drive execution.

Measuring everything means measuring nothing. KPIs are meant to help focus not as a distraction. In the end what it comes down to is Executive Discipline. Don’t ask questions you don’t need to know the answer to. Don’t ask for KPIs hat don’t drive action. Always reflect on the fact that although it might just be a brain wave for you, people will take it serious and invest time and effort to find you the answer. So make sure to be consistent in what you ask for. Make sure everyone involved can see the progress being made. Make sure what you measure is aligned with what you defined as priorities in you planning cycle.

Why?

Because it makes for a stronger financial performance and you will meet happier employees that work fewer hours with higher impact.

A company is not a hobby room, it’s a place of business!