Let’s Ban KPIs…

June 14, 2016 by Stacey Barr

Mark Hocknell, my lead licensed PuMP Partner, wrote this article, “Let’s Ban KPIs”, which was posted here as well as Mark’s own website. To avoid duplicate content, this article now links to Mark’s original article.

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  1. David says:

    I agree, it is common to mix BAU activity measures with KPIs; I think that an unthinking reflex of “kpi=good” is too easily and sounds good in some board rooms.

    In my own business I’ve developed one KPI (thus ‘k’, ‘key’ means something) that will ‘indicate’, that is, not demonstrate conclusively, performance and is sufficient to trigger further investigation if all is not as expected.

    For this KPI to work, a whole lot of other actions need to occur; but I don’t need to measure these, I just check the KPI, and the KPI is about customer experience: the only thing that really matters

    • Stacey Barr says:

      Agreed, customer experience is the ultimate that matters. I do like to measure other drivers of it though, David, particularly when I’m doing business experiments to test the impact of different improvement strategies on an outcome like customer experience.

  2. Revaz Vachnadze says:

    Why not to limit oneself with D.Parmenter’s definition of the KPIs?
    This will remove main issues.

  3. Ken Cowman says:

    Whenever we are implementing Lean Enterprise Management with our clients, we focus on restraining the number of KPIs to two per stakeholder value with each stakeholder value weighted towards the goal of having a balanced, lean organization. One KPI measures the stakeholder value and the other measures the reduction of waste towards achieving the desired result for the stakeholder.

  4. David Janes says:

    KPI’s about as much good as a chocolate teapot unless those who need to achieve them are told clearly what they are, they are actually achievable and they are resourced. Oh, don’t move the goalposts, this naff’s everyone off and causes friction and mistrust

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