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KPI's - keeping score

Updated: Oct 31, 2022

Whilst most companies use measures, key performance indicators and dashboards, they may work against the overall company goals.

KPI's work in a similar way to a score track or health points etc in a game or simulation, offering visualisation of, how well a player is performing in the context of the game.

In most cases, a game or simulation needs a defined winning condition. If this is unclear to the participants, they cannot play to their best abilities and may become completely disengaged. Knowing the winning conditions will generally inform and influence any decisions taken during the game. This is dependent on two other points:

relevance - understanding how to achieve the winning condition

ability - being able to to achieve those conditions.

This second point, ability, can also be affected by personal perception, believing one is able to achieve something irrespective of whether that belief is well founded.

So, it is in the real world. A lack of measures leaves the individual unsure of their progress or whether they are doing the right thing. Measures that don't relate to your work-life or ones you feel ill-equipped to affect do not inspire and may demotivate. Visible measures that are achievable and understood inform and influence decisions. Where the imp