How can undefined KPIs impede transformation initiatives?
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As the saying goes, what gets measured gets improved. There are two ways to benchmark - a) historical and b) peer benchmarking. Without well-defined and well-understood KPIs, there will be a lack of clarity on whether the transformation initiative is going in the right direction with the right velocity.
I can't think of working with undefined KIPs. They are important to business objectives because they keep objectives at the forefront of decision making. It's essential that business objectives are well communicated across an organization, so when people know and are responsible for their own KPIs, it ensures that the business's overarching goals are top of mind.
Undefined KPI's will impede performance period! If you do not have a target how are you going to hit it. Vague goals for performance does not provide the guidance needed to excel. Communication is key to any enterprise succeeding and running in an upward trajectory .
Undefined or poorly defined KPIs will likely lead to poor prioritization and governance.
KPIs that are undefined can impede transformation initiatives in a number of ways. They can make it difficult to track progress and identify areas of improvement, and can also lead to confusion and frustration among employees who are trying to implement changes. Additionally, undefined KPIs can give senior leaders a false sense of security that transformation efforts are on track, when in reality they may not be.