Less metrics, more direction

Why inventing indicators hurts your industry?

Creating indicators without strategic alignment or technical validation generates more problems than benefits, diverting the organization's focus and making assertive decisions difficult.

Invented indicators have some common negative characteristics

Lack of Strategic Clarity

These indicators do not directly reflect the organization's strategic objectives, generating confusion about what the real priorities are.

Low Operational Relevance

They are not relevant to day-to-day operations, making them irrelevant or of little use to teams.

Inconsistent Data

Often, these indicators do not have clear collection and validation methods, resulting in inconsistent or incorrect information.

Information Overload

Excessive unnecessary indicators can saturate teams with data that does not add value, making it difficult to identify and act on truly important issues.

Direct consequences of this practice include

Focus Shift

Teams start dedicating time to irrelevant indicators, diverting valuable resources from activities that could generate concrete results.

Loss of Credibility

When they realize that the data used does not reflect operational reality, confidence in the information generated by the organization decreases drastically.

Wrong Decisions

With poorly defined indicators, managers can make decisions based on inaccurate information, resulting in strategic failures and significant financial losses.

Reduced Productivity

The need to report and monitor invented indicators consumes excessive team time, harming overall productivity.

How to avoid this trap?
To avoid these losses, organizations need to adopt a disciplined and strategic approach in defining key indicators. Each metric must be carefully evaluated for its relevance, accuracy and usefulness for effective decisions.

In the Industrial KPIs ebook we cover this and other fundamental topics, click here to read in full.

Well-defined, strategy-driven KPIs transform operations. Made-up KPIs waste resources. Choose the approach that aligns with your goals.