Why KPIs Aren’t Enough

Tracking KPIs are a great windshield for your business, as long as you select the right ones.

The problem with KPIs are that they often lose their context.

• “Why is this KPI important?”
• “Why is that KPI measured in this way?”
• “We’ve been measuring this KPI for 8 years now, is it still relevant?”
  

KPIs aren’t goal-oriented by themselves. They’re just a number. Not necessarily a gauge on what you are tracking to.

Publicize the Context and Progress

This is why I love OKRs (Objectives and Key Results). OKRs pair an overarching goal with measurable outcomes.

• The Objective is the Business Goal you are looking to achieve.
• The Key Results are the KPIs carefully selected to advance that objective, stated as a result.
  

KPIs don’t drive accountability. A good OKR framework does.

If your team uses KPIs without a results-oriented lens behind them, you risk a lack of buy-in, and you risk a lack of progress.

It doesn’t have to be complicated. Name your top three business objectives, and pair your main KPIs with those objectives. Then make sure those KPIs have stated expected results.

This will go a long way in driving results out of yourself and your team.