What is wrong with KPIs

[Roy Greenhalgh <rgreenh@attglobal.net>]

Dirk

The key thing that is wrong is that, as a target, they act as a barrier.

KPIs are used extensively in measuring the performance of departments in
both local and central govt in the UK.  They are used even to measure
the capability of a class of 7 year olds! They (the teaching staff and
those who "control" them) are simply comparing last year's figures with
this, even though the entire class is a different set of children.

A department will therefore set out to achieve the level the KPI
requires.
What's more if they can't reach it by fair means, they will use foul;. 
They will cheat!  For example, a process that must be done in say, 40
days, may require the department to write back to the customer for
information.  Some departments cheat by stopping the clock until the
answer is received.  Others say .. "We should have been more careful in
both what we asked for, and how we asked for it" .. and don't stop the
clock.

And, of course, once the department has achieved the target, they stop. 
"We have done what we we have been told to do".

Thus KPI's can totally destroy any semblance of Continuous Improvement.

Roy Greenhalgh