Not all KPIs are created equal. Design metrics that drive the right behaviors and business outcomes.

Leading vs Lagging

Balance leading indicators (predictors of success) with lagging indicators (historical results). Leading indicators allow course correction; lagging indicators measure past performance.

Visibility

Make KPIs visible to the teams responsible for them. Dashboards, reports, and alerts ensure people see and act on metrics daily, not just during reviews.

Ownership

Assign clear ownership of each KPI to a person or team. Owners should understand how their actions impact the metric and have authority to make changes.

Incentives

Align incentives with desired behaviors. Be careful not to optimize for the metric rather than the outcome. Gamification can drive engagement.

Review Rhythm

Establish regular review cadences for KPI discussion. Weekly updates on key metrics maintain focus. Quarterly deep-dives analyze trends and adjust strategy.