September 2020
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September 2020
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KPIs Aren't Numbers, They Are Relationships

Monday, September 14, 2020

What exactly are key performance indicators? On a surface level, they're a key tool in measuring performance. But in reality, they're a frustrating way for managers to count beans they don't understand and don't care to figure out. To keep eyes from glazing over when corporate KPIs are discussed, leadership needs to approach these metrics realistically and communicate what these numbers mean. At their core, KPIs are a reflection that value creation goes two ways. Think about employee engagement metrics, for example. Why does an organization care if an employee is engaged? Because they need something from them—specifically, productivity—and higher engagement numbers translate to higher levels of productivity. One measurement without the other is meaningless, and without linking the relationships between KPIs, to managers, these will look like tables of numbers. A KPI on its own is only the partial measure of something. For them to be meaningful they have to describe a relationship.

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