How to Balance your KPIs to avoid skewed results Part 1 of 3

KPIs should always be balanced.

 

Why?

 

Because, what you typically find is that if you measure one thing, that thing will improve but something else will deteriorate.

 

For example, if I focus on. Production quantity, I might achieve the volumes I want but quality declines.

 

Similarly, if I measure quality I might find that Quantity declines.

 

The trick is to always measure both at the same time and ensure they have the right weighting or focus.

 

At a business level, you could encounter the same problem.

 

If you only measure Financial Performance you will find that other perspectives such as Customer or People related KPIs deteriorate and you land up with a long term issue that becomes difficult to come back from.

 

The opposite is also true, if you only focus on measuring Customer or People related KPIs you could find that you underperform Financially and everyone loses.

 

Tip 

Make sure you balance your KPIs but measuring the different types of KPIs at the same time.

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