Non-working KPIs in IT: what they can cause and how to choose the right ones

Why KPIs are important for IT companies?

How to understand when selected KPIs do not work?

  1. The selected or created KPIs do not correspond to the strategic goals of the company. The metric solves some local problem that lies outside the business development goal or even interferes with its development
  2. The targets or limits are defined incorrectly. If they are too low and easily achievable, it will lead to the demotivation and lack of development of employees. And absolutely unachievable — to the denial of goals and employees’ nihilism, who will only pretend that they are working on the assigned tasks.
  3. Employees do not understand the KPIs logic. The team should understand and share the idea, behind each metric. Otherwise, you will get either ignorance of the goals or incorrect prioritization
  4. KPIs are redundant. Employees can get overwhelmed by the abundance of goals, metrics, and threshold requirements. The worst thing a manager can think of is assigning conflicting KPIs. When the performance of one KPI negates the work on another criterion, or vice versa.
  • simple
  • clear
  • accepted by all employees
  • achievable
  • aimed at improving the efficiency of the process or accelerating the result

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