Hi Mohammad, Thank you for the question. I don’t think there is a short answer for this question… But here are some thoughts:
- KPIs are just indicators, so they are efficient/effective if they generated some insights for the management, and supported some decisions. Still, without seeing a long term perspective it is hard to say if they were really good or not.
- There are symptoms of an inefficient KPI: it doesn’t have any business context; it is easy to game by people; it is hard to measure; probably the most important – it is not a leading KPI (or if it a lagging KPI, then there is no a leading KPI par for this lagging KPI).
I think it is a good topic to explore more. I’m thinking about an article with some examples. Will post an update here once it is published.