Why leaders are using KPIs wrong
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Why leaders are using KPIs wrong
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Narrated by:
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Written by:
Jon and Kory discuss why the metrics designed to improve performance can sometimes lead businesses in exactly the wrong direction.
Kory explains why e.l.f. does not tie compensation directly to KPIs, and why misaligned targets can discourage creativity, distort decision-making and even put good people at risk.
They also tackle a growing leadership problem: treating KPIs as instructions rather than information. How high should targets be? When do they create useful focus, and when do they become a ceiling? And what should leaders use instead when the work requires judgement, experimentation and long-term thinking?
Timestamps
00:00 - Start
01:01 - Do KPIs kill creativity?
02:56 - Goodhart’s law
03:31 - Why e.l.f. do not have compensation based KPIs
06:50 - Why misaligned KPIs can get you fired
09:37 - Can KPIs hold you back?
13:25 - People are using KPIs like AI
14:19 - How high should you set KPIs
16:19 - The better way to approach KPIs
19:09 - Are KPIs out?