Michael Schrage: How to Make Key Performance Indicators Key Again
MIT Sloan Management Review and Google’s new cross-industry survey about key performance indicators (KPIs) asked senior executives to explain how their organizations are using KPIs in the digital era. 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.
Among its findings, this comprehensive report notes that: "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."
MIT IDE fellow Michael Schrage, who co-authored the report with SMR’s David Kiron, highlighted some of the most important findings in an interview with IDE Editorial Content Manager, Paula Klein. Read the Q&A on IDE's Medium publication here.