KPI Confusion
Campbell’s Law is the observation that once a metric has been identified as a primary indicator for success, its ability to accurately measure success is compromised.
In a paper entitled “Assessing the Impact of Planned Social Change,” American social scientist Donald T. Campbell described the effect of quantitative measurements on decision-making processes this way:
“The more any quantitative social indicator is used for social decision-making, the more subject it will be to corruption pressures and the more apt it will be to distort and corrupt the social processes it is intended to monitor.”
A sales manager who measures the number of calls each sales representative makes may inadvertently cause problems if this metric is an important criteria for bonuses. If sales people are being evaluated on this KPI, they may put more effort toward making sales calls and less on other important tasks, such as trying to win the business.
Much better you focus on KRAs (Key Result Areas). It’s more valid for your organisation to:
- Create client relationships than merely making another notch.
- Develop commitment in staff rather than compliance.
- Improve staff competencies more than maintaining employment tenure.
- Do things better instead of faster.
- Have people working smarter, not just harder.
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“I worry that organisational leaders are more interested in KPIs than they are in building a strong enterprise by caring for their people.”
— Ric Willmot
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