Because “more metrics” isn’t the strategy you think it is.
The Temptation of a New KPI
Every initiative eventually reaches the same moment: someone, somewhere, suggests a new KPI.
Maybe it's during a strategy refresh. Maybe it pops up in a team retro, a board meeting, or a vendor pitch. It usually sounds like this:
“We should be tracking this.”
And just like that, a new metric is born. It might get a dashboard tile, a weekly review slot, or a spotlight in your next exec report. But behind that number? A tangled web of data, definitions, ownership, incentives—and consequences.
Adding a KPI sounds like progress. But if you’re not careful, it’s just measurement theater.
The Hidden Costs of More KPIs
Adding a KPI isn’t free. Here’s what you’re actually signing up for:
- Data Infrastructure: Where does the data live? How often does it update? Who QA's it?
- Definition Drama: What does "active user" or "on-time delivery" really mean across departments?
- Behavioral Side Effects: What will teams start gaming—or neglect—now that this is the new hot stat?
- Review Bloat: Who’s going to stare at this chart every week and pretend it still means something?
Worse, when leaders layer on KPIs without pruning old ones, they create a cluttered dashboard culture. Teams stop paying attention. Or they drown in the noise.
KPI Inflation vs. KPI Integrity
Here’s the uncomfortable truth: many orgs use KPIs to perform accountability instead of practicing it.
You see this in:
- Redundant Metrics: Multiple KPIs tracking the same behavior with slightly different formulas.
- Vanity Metrics: Numbers that look good in slides but don’t inform real decisions.
- Reactive KPIs: Metrics added after a crisis to show “we’re watching it now.”
The result? KPI inflation. Like currency, it devalues everything. Teams get cynical. Performance reviews lose coherence. Leadership signals become fuzzy.
Maintaining KPI integrity means resisting the urge to add unless there’s a clear business case.
Five Pre-KPI Questions Every Leader Should Ask
Before you add another number to your stack, walk through these five questions:
1. What behavior do we want to reinforce, and what are the risks of reinforcing it too much?
Every KPI shapes behavior. Make sure you understand the shadows it casts.
2. Are we sure this isn’t already covered by an existing KPI?
Duplication leads to misalignment. Sometimes you don’t need a new metric—you need to clarify or recalibrate an old one.
3. Is this metric diagnostic or directional?
KPIs should guide action. If it’s just interesting trivia, put it in an appendix, not on the dashboard.
4. Who owns this number, and can they influence it?
Don’t assign KPIs to teams who have no agency to move them. That’s not accountability—it’s cruelty.
5. What decisions will this KPI directly inform?
If you can’t answer this in one sentence, it doesn’t belong.
How to Add KPIs Without Losing the Plot
If the new KPI survives the gauntlet above, here’s how to introduce it without chaos:
- Pilot First: Test it with a single team or initiative before rolling it out org-wide.
- Document the “Why”: Include the business rationale in your KPI repository or slide deck.
- Set Sunset Reviews: Every new KPI should have a “relevance review” date baked in—90 days, 6 months, whatever’s right for your org.
- Create a Story, Not a Spreadsheet: Help teams understand how this KPI connects to broader goals and tradeoffs. If it doesn’t tell a story, it won’t get used.
Final Thought
Great KPIs are like great tools: built for a purpose, easy to use, and sharp enough to matter.
Before you add another one to the pile, slow down. Ask better questions. Revisit the ones you’ve already got.
Because in the end, the best organizations aren’t those who measure the most.
They’re the ones who act on what matters.
ChangeGuild: Power to the Practitioner™
Frequently Asked Questions
Q: Isn’t tracking more KPIs better than tracking too few?
A: Not if it muddies your focus. More KPIs can create noise, encourage conflicting priorities, and drain time on reporting instead of acting. Clarity beats quantity.
Q: What’s the difference between a good KPI and a vanity metric?
A: A good KPI informs decisions and drives action. A vanity metric makes your slide deck look pretty but rarely prompts a change in behavior. Ask: Would we change anything if this number went up or down?
Q: How often should we audit or retire KPIs?
A: More often than most teams do. Set a 90- or 180-day review for every new KPI. If it’s not helping you make better decisions, it shouldn’t stick around.
Q: Who should “own” a KPI?
A: Someone who can influence it. Don’t assign KPIs to people who are downstream from the outcome—it creates resentment, not results.
Q: Can we just “test” a KPI before rolling it out?
A: Yes—and you should. Pilot it with a single team or project. Watch for confusion, unintended consequences, or dashboard fatigue before scaling.
Q: What if leadership wants it tracked, even if it’s redundant?
A: Push back—tactfully. Offer a better alternative, or combine similar metrics into one that tells a clearer story. Every KPI has an attention cost. Spend wisely.
📉 Too Many Metrics, Not Enough Movement?
You don’t need another dashboard—you need a system that connects strategy to action. We help change leaders simplify KPIs, align teams, and focus on what actually drives results.
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