Why do you need KPIs? To measure & to visualize a state / performance of system, to have one source of truth between the stakeholders on certain system parameters, to link execution to strategy. Hence, its called the key performance indicator. Its an undeniable truth that good KPIs benefit an organization. Of late the question is what is a good KPI? How good it is? How well does it represent the system - how green or how red? I got this question after witnessing mad circus with KPIs.
1. Ours was a scrum team responsible for meeting the org set shipment KPIs on sprint review date. The KPI set for meeting the KPIs is 0 violations.
2. Until sprint review, all the KPIs will have serious violations. Sometimes, KPIs never got measured until last date.
3. On the last date, the KPIs always are met and all the KPIs are green.
4. Product owners, responsible for accepting the product, often express surpises at how the KPIs have been met. However, hardly anyone questions. Behind the scene, there will be gossips that the 0 violation KPI is applicable for them too.
Whats the purpose of KPI if it doesn't serve purpose? This is widely practiced practice of KPI madness.