Less is more

A common problem in performance management is the number of KPIs organizations use to measure their strategy execution. People want to be in control and therefore define as much KPI’s as possible. Because they are interesting, to make sure they are available when needed, and so on. As a result, people are drowning in information (also called information overload), reports are getting blurred, users are losing their overview and control and will fall back on their intuition as a steering mechanism.

To make sure this will not happen, organizations have to take care of the number of KPIs they use. There has to be a balance between the need for information to steer the organization and information overload.

In practice, this means each manager has five to eight KPIs to measure the realisation of his or her goals.

This article describes one of the golden rules to avoid common pitfalls in measuring with KPIs.

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