KPIs - The Problem of Measuring Inputs vs. Outputs vs. Outcomes
"If you can't measure it, you can't improve it" - Peter Drucker
Driving performance often means "keeping score" of how we're doing but how do we know if we are measuring the right things?
In this video, we dive into the complexities of using Key Performance Indicators (KPIs) to measure success, focusing on the challenge of measuring outcomes and impact rather than just inputs, activities, or outputs.
We discuss the risks of poorly designed metrics and how that can lead to perverse incentives and unintended behaviors. when KPIs are too tightly bound to reward systems.
We also explore the problem of sampling in performance measurement as you can't possibly measure everything but measuring subset of data can lead to pitfalls such as survivorship bias.
Finally we move from KPIs to Objectives and Key Results (OKRs), a framework designed to prioritize meaningful outcomes, set impactful goals and drive real progress.
Join us as we unpack how to avoid these common KPI mistakes and use OKRs to align goals and track success.
References/Resources:
-Navigating the Nuances of OKRs: Understanding Inputs, Activities, Outputs, Outcomes, and Impact (Apr 2024) https://okrinternational.com/inputs-a...
-OKR vs KPI: Differences and how they work together (Jul 2024) https://mooncamp.com/blog/okr-vs-kpi
-The Cobra Effect (Jul 2019) https://sketchplanations.com/the-cobr...
-Survivorship Bias (Sep 2021) https://www.iflscience.com/how-a-helm...
Image Credits:
-https://depositphotos.com/photos/heal...
-https://sketchplanations.com/the-cobr...
-https://collection.nam.ac.uk/detail.p...
Music/Audit Credits :
-Music: Morning / Musician: LiQWYD / URL: / liqwyd
-Music: Spirit Blossom / Musician: RomanBelov /URL: https://pixabay.com/music/-spirit-blo...
-Music: Chill / Musician: LiQWYD / URL: / liqwyd