Key Performance Indicators, 4th Edition

Introduction

Overview

Every performance measure has a dark side, a negative consequence, an unintended action that leads to inferior performance. I suspect that well over half the measures in an organization may well be encouraging unintended negative behavior.

The Introduction explores the burning platform in performance management: how old, broken bureaucratic methods are being used that limit the longevity of organizations. It suggests a way forward, blazed by some modern organizations and documented by the paradigm shifters (Drucker, Welch, Collins, et al.).

Key learning points from the Introduction include:

1. Every performance measure has a dark side and why over half of your measures may be destroying value.
2. The three major benefits of ascertaining an organization's critical success factors and the associated performance measures.
3. The importance of measuring at the top of the cliff.
4. Examples of measures that are often confused as KPIs and dysfunctional measures that, if used, will damage an organization.
5. Performance with KPIs should be seen as a requirement, a “ticket to the game” and not worthy of additional reward.
6. Why a KPI project has to be run in-house.
7. The steps CEOs need to take to get performance measurement to work in their organizations.
8. The foolishness of setting year-end targets when you cannot see into the future.
9. Guidelines as to the chapters the Board, CEO, KPI team, and team coordinators should read.
10. Why owners of my previous editions should buy the fourth ...