KPI Surgery – Why Every Leader Must Rethink How They Measure Success
Written By Gavin Bryce
Summary
Key Performance Indicators (KPIs) are a critical part of any leadership toolkit. But the world has changed—and many KPIs haven’t. In this blog, I explore why traditional measurement systems often fall short, what modern KPI design requires, and how leaders can ensure their metrics truly drive strategic success.
In leadership, what gets measured gets managed. But what if what you’re measuring no longer matters?
Too often, KPIs are inherited artifacts—metrics created in a different era for a different business landscape. As organisations evolve, markets shift, and strategies pivot, many KPIs silently drift into irrelevance. They continue to be reported month after month, giving a comforting illusion of control while failing to drive real performance.
The truth is stark: obsolete KPIs are not harmless. They consume resources, distract attention, and sometimes even drive the wrong behaviours.
If we want to lead effectively in today’s dynamic environment, we need a more deliberate, strategic approach to KPIs.
The Hidden Danger of Legacy KPIs
Legacy KPIs often survive for two reasons: habit and fear. Leaders are reluctant to change long-established reporting structures because they are familiar, and changing KPIs might reveal uncomfortable truths about organisational focus and accountability.
But sticking with outdated metrics carries hidden costs:
Focus drift: Teams prioritise the wrong activities.
Motivation decline: Staff don’t see the link between their efforts and meaningful outcomes.
False sense of security: Metrics show improvement even when strategic health is deteriorating.
KPIs must evolve alongside strategy. Otherwise, they become mere vanity indicators—telling us what we want to hear rather than what we need to know.
What Makes a Great KPI Today?
Modern KPIs must satisfy five essential criteria:
Strategic Alignment: Every KPI must tie directly to a strategic objective.
Actionable Insight: It should inform decisions—not just describe what happened.
Leading and Lagging Mix: Measure both what predicts success (leading) and what confirms it (lagging).
Simplicity and Clarity: A great KPI should be easy to understand at a glance.
Behaviour-Driving: Metrics should incentivise the right actions, not encourage gaming the system.
If a KPI doesn’t tick all five boxes, it’s time for surgery.
A Smarter Framework: FAST Goals over SMART
Many organisations are familiar with SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound).
But research suggests that a more modern approach—FAST Goals—better supports strategic agility:
Frequently discussed
Ambitious
Specific
Transparent
Rather than setting and forgetting KPIs, leaders should foster a culture of regular dialogue around performance metrics. Frequent conversations keep KPIs alive and aligned with shifting priorities.
Leading vs Lagging KPIs: Why the Balance Matters
Leading KPIs predict future success. Lagging KPIs show past performance.
For example:
Leading: Number of new leads generated per week (predicts future sales).
Lagging: Monthly sales revenue.
If you only measure lagging indicators, it’s like driving a car by looking through the rearview mirror.
Leading indicators empower you to course-correct early, before the damage is done.
Common KPI Pitfalls to Avoid
Tracking activities, not outcomes (e.g., “number of meetings held” vs. “decisions made”)
Measuring what’s easy instead of what’s important
Having too many KPIs (more than 3-5 strategic KPIs dilutes focus)
Failing to revisit and refresh KPIs regularly
A good leadership discipline is to review your KPI set every quarter with a simple question:
“Are these metrics still the best indicators of success for where we’re going?”
Reflection
Are you measuring what matters most—or just what’s visible?
When was the last time you performed a “KPI audit”?
If your strategic priorities changed tomorrow, how many of your KPIs would still be relevant?
Further Reading
Linked to Useful Tools
- KPI Mega Library – Explore KPIs by Industry and Function
- KPI Design Checklist – Free Download (Message me and I’ll send it to you).