One frequent mishap in larger organizations is exaggerated confidence in KPIs.
It is interesting to note that the literature on management, spends little to no attention on the accuracy of the measurement, while the literature on leadership barely mentions such KPIs at all. When discussing topics that are easy to measure, like manufacturing, taking the accuracy of KPI measurements for granted may make sense – however, the business of software is so far largely resisting meaningful, repeatable measurement. KPIs are so important because, often, KPIs are tied to people’s bonuses, which immediately invites, encourages … tuning of KPI actuals.
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