What is the Current Role of KPIs in your Company?

CSFs and KPIs
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Gandhi Heryanto
Management Consultant, Indonesia

What is the Current Role of KPIs in your Company?

🔥NEW Schrage M. and Kiron D. conducted research on the use of KPIs. In their survey, key performance indicators are defined as 'the quantifiable measures an organization uses to determine how well it meets its declared operational and strategic goals.' The results show that most respondents do not rely significantly on KPIs to lead people and their processes. Nearly 30% of respondents said that their organization's KPIs have little, minimum, or none at all in driving the way they lead or manage their people and processes. But over 40% said their organization's KPIs were quite influential.
Overall, most companies do not deploy KPIs rigorously for review or as drivers of change. In practice, KPIs are regarded as "key" in name only; the most prevalent attitude toward them seems to be one of compliance, not commitment.
Does your company use KPIs in a perfunctory way, or as an instrument that adds value, or does it not use them at all because they are considered useless?
Reference: Schrage M. and Kiron D. (2018), "Leading With Next-Generation Key Performance Indicators", MIT Sloan Management Review.

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