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This is a summary of the full article. To enjoy the full article sign increate an accountor buy this article. The results shed light on the challenges and emerging opportunities companies face when using KPIs, demonstrate the many ways advanced use of KPIs can benefit organizations, and offer steps executives can take to make the most of KPIs going forward.
Based on a global survey of more than 3, senior executives and interviews with 18 executives and thought leaders, we find business leaders worldwide are struggling to strike a workable balance between tactical and strategic KPIs; operational and financial KPIs; and KPIs that effectively capture the moment while anticipating the future.
This imbalance is a source of measurable dissatisfaction and concern as data for KPI improvements continues to increase. Executives also appear torn between adding more detailed KPIs or lasering in on a smaller, simplified set.
While no consensus KPI best practice emerged from the survey, we did find a small slice of companies are exhibiting sophisticated data-driven and analytically innovative approaches to maximizing the impact of their KPIs.
The responses suggest this perfunctory treatment reflects cultural and organizational inertia, not technical or operational limitations. In terms of perceived effect and influence, our survey finds that, ironically, most organizations are KPI underachievers.
They get less value than they say they want.
As next-generation predictive algorithms are incorporated into business process planning and design, they seem destined to inspire next-generation digital dashboards.
KPIs will consequently offer predictive and prescriptive indicators, not just rearview-mirror reviews.
Data-driven companies that leverage these advances by reconceiving their KPIs will enjoy distinct competitive advantages. Read the Full Article:View Jenny Pascua’s profile on LinkedIn, the world's largest professional community.
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About the Authors: Michael Schrage is a research fellow at the MIT Sloan School’s Initiative on the Digital Economy, where he does research and advisory work on how digital media transforms agency, human capital, and innovation..
David Kiron is the executive editor of MIT Sloan Management Review, which brings ideas from the world .
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