{"id":503,"date":"2025-11-26T08:15:42","date_gmt":"2025-11-26T13:15:42","guid":{"rendered":"https:\/\/andfriends.ca\/blog\/?p=503"},"modified":"2025-11-26T08:20:23","modified_gmt":"2025-11-26T13:20:23","slug":"kpi-is-behaviour-2","status":"publish","type":"post","link":"https:\/\/andfriends.ca\/blog\/en\/2025\/11\/26\/kpi-is-behaviour-2\/","title":{"rendered":"KPI is Behaviour."},"content":{"rendered":"\n

It\u2019s a phrase I often repeat, but had never actually taken the time to write down.<\/strong><\/p>\n\n\n\n

Just yesterday, I was discussing business models with a client. And as often happens, the takeaway was simple: a well-designed company naturally generates the right behaviors \u2014 from both its employees and its partners.<\/p>\n\n\n\n

Many organizations have lofty ambitions: performance, product excellence, positive impact\u2026 But without a deep understanding of how they actually function, they implement metrics that end up hindering those very goals instead of supporting them. The result? A disconnect between stated intentions and real-world behaviors.<\/p>\n\n\n\n

Over the years, I\u2019ve observed, unpacked (and sometimes helped fix) this kind of disconnect with several clients. Today, I\u2019d like to share a few guiding principles to help you reflect on your own metrics \u2014 the ones you track, and the ones you impose on others.<\/p>\n\n\n\n

Because a poorly designed KPI isn\u2019t just a meaningless number. It\u2019s a behavior you\u2019re encouraging \u2014 whether you realize it or not.<\/p>\n\n\n\n

So, what exactly is a KPI?<\/strong><\/h3>\n\n\n\n

In English, KPI stands for Key Performance Indicator<\/em>.<\/p>\n\n\n\n

KPIs are measurable indicators.<\/p>\n\n\n\n

For example:<\/p>\n\n\n\n

    \n
  • In customer service: average response time<\/li>\n\n\n\n
  • In marketing: campaign conversion rate<\/li>\n\n\n\n
  • In HR: employee retention rate<\/li>\n\n\n\n
  • In manufacturing: number of units shipped per day<\/li>\n\n\n\n
  • In customer experience (CX): customer satisfaction level<\/li>\n<\/ul>\n\n\n\n

    There\u2019s an overwhelming number of things you can<\/em> measure.<\/p>\n\n\n\n

    But a word of caution: not all metrics are created equal \u2014 and none of them tell the full story.<\/p>\n\n\n\n

    Let\u2019s revisit those examples.<\/strong><\/h3>\n\n\n\n

    In customer service:<\/strong><\/p>\n\n\n\n

    A low average response time might seem<\/em> like a good thing. You might assume it\u2019s due to an incredibly efficient call-handling team.<\/p>\n\n\n\n

    \"Article<\/figure>\n\n\n\n

    But in a real-world case, we found that in response to pressure to reduce response times, agents were transferring calls too quickly \u2014 passing customers off to other departments without really solving their problems. Result: each call was shorter, but customers had to wait longer between calls.<\/p>\n\n\n\n

    In the end, that tanked brand perception metrics\u2026 for a completely different team.<\/p>\n\n\n\n

    Oops.<\/strong><\/p>\n\n\n\n

    In manufacturing:<\/strong><\/p>\n\n\n\n

    The number of units shipped per day sounds great! The more you produce, the more you can sell. Perfect, right?<\/p>\n\n\n\n

    But in another case, we saw conflicting KPIs at play.<\/p>\n\n\n\n

    Imagine one person\u2019s bonus is tied to daily production output. That person will do everything they can to go faster. Go go go!<\/p>\n\n\n\n

    \"Article<\/figure>\n\n\n\n

    Now imagine someone else is responsible for the quality of what comes off the line \u2014 minimizing defects, returns, and lawsuits.<\/p>\n\n\n\n

    Slow down!<\/p>\n\n\n\n

    The result? Constant tension about how to do the work.<\/p>\n\n\n\n

    Each person is acting based on their KPIs, motivated by their own incentive system.<\/p>\n\n\n\n

    Behaviors by design<\/strong><\/h3>\n\n\n\n

    The value and subtlety of business design is that it helps companies uncover problems that are often systemic \u2014 or even holistic.<\/p>\n\n\n\n

    Once the real issue is identified, that\u2019s<\/em> when the design work begins.<\/p>\n\n\n\n

    In the examples above, each metric is valid, and tracking them makes sense.<\/p>\n\n\n\n

    But you need to understand how to use KPIs \u2014 and which ones to show to which stakeholders. You also need to define which<\/em> KPIs take precedence over others.<\/p>\n\n\n\n

    If your company says it\u2019s committed to quality, then customer satisfaction, defect rates, and returns should matter more<\/em>than how much you produce each day.<\/p>\n\n\n\n

    If your company\u2019s strategy is to be the cheapest on the market, then daily output and process optimization might matter more<\/em> than quality or R&D investment.<\/p>\n\n\n\n

    These are just very simple examples \u2014 there are as many scenarios as there are businesses.<\/p>\n\n\n\n

    It\u2019s also important to understand that there\u2019s no one metric \u201cto rule them all.\u201d It\u2019s about balance.<\/p>\n\n\n\n

    Of course, a company should always strive to improve across the board. But when it comes time to make decisions about desired behaviors\u2026 you need to understand what your metrics are actually<\/em> driving.<\/p>\n\n\n\n

    Because designing KPIs means designing behaviors.<\/p>\n\n\n\n

    Still not convinced? Let\u2019s talk about the snake problem.<\/strong><\/h3>\n\n\n\n

    In the 1960s, in some southern U.S. states, authorities wanted to reduce the rattlesnake population. So they created a bounty program: citizens were paid cash for each dead snake they brought in. It was a great metric \u2014 the more snakes killed, the greater the program\u2019s \u201csuccess.\u201d<\/p>\n\n\n\n

    \"Article<\/figure>\n\n\n\n

    At first, it worked. People were killing snakes, and their numbers dropped.<\/p>\n\n\n\n

    But soon, some people saw a business opportunity:<\/p>\n\n\n\n

    They started breeding rattlesnakes on farms just to kill them and collect the reward.<\/p>\n\n\n\n

    When you reward a metric, people will eventually act in their own interest.<\/p>\n\n\n\n

    So ask yourself: What behaviors do you encourage when you introduce\u2026<\/p>\n\n\n\n

      \n
    • A sales bonus?<\/li>\n\n\n\n
    • A billing rate per employee?<\/li>\n\n\n\n
    • A target for number of support tickets closed?<\/li>\n\n\n\n
    • A count of awards won per year?<\/li>\n\n\n\n
    • A view count on social media?<\/li>\n<\/ul>\n\n\n\n

      So how do you adjust your KPIs?<\/strong><\/h3>\n\n\n\n

      Every business is unique. KPI adjustment should be a cyclical exercise. Economies shift, companies evolve, people change. To stay competitive, a company must constantly reassess itself.<\/p>\n\n\n\n

      And the little exercise I suggest here is really just\u2026 a conversation. It\u2019s called the Even Over<\/em> strategy.<\/p>\n\n\n\n

      Concrete examples:<\/strong><\/p>\n\n\n\n

        \n
      • Quality even over speed<\/em>\u00a0\u2014 We prioritize quality, even if it takes more time.<\/li>\n\n\n\n
      • User experience even over short-term profitability<\/em>\u00a0\u2014 We invest in UX, even if it doesn\u2019t pay off right away.<\/li>\n\n\n\n
      • Transparency even over brand control<\/em>\u00a0\u2014 We choose honesty and authenticity, even if it\u2019s risky for our reputation.<\/li>\n<\/ul>\n\n\n\n

        This kind of conversation helps companies identify which metrics align with their strategy \u2014 and how each team can influence what truly matters.<\/p>\n\n\n\n

        It\u2019s about framing these as business<\/em> metrics, not team or individual metrics. Once you establish that alignment, you can cascade down: define what to measure per team, then per person.<\/p>\n\n\n\n

        \n\n\n\n

        KPIs: a reflection of your true identity<\/strong><\/h3>\n\n\n\n

        These are choices that, if you design your company consciously, should reflect its identity. Identify who you want to be as a company \u2014 and design KPIs that encourage the behaviors you want to see.<\/p>\n\n\n\n

        If you say you\u2019re all about quality, then prioritize and measure the quality<\/em> of what\u2019s produced \u2014 and reward people accordingly. Broadcast that commitment to quality, proudly. Don\u2019t leave employees guessing how to ramp up production. Don\u2019t pressure them on speed. Don\u2019t evaluate them based on billing rates or the number of tickets they close.<\/p>\n\n\n\n

        If you\u2019re an innovative company, measure the number of experiments and prototypes. Measure learning. Measure risk vs. potential. Don\u2019t focus on KPIs for success or ROI. Innovation, by definition, is about the unknown.<\/p>\n\n\n\n

        If you\u2019re a user-centric company, measure how often non<\/em>-UX employees talk to users each month. Measure how often you validate user feedback. Measure how many actions genuinely bring your company closer to its users.<\/p>\n\n\n\n

        If you say you\u2019re people-first and care about your employees, measure the number of activities held each month. Measure participation. Measure employee retention. Measure volunteer involvement in the community.<\/p>\n\n\n\n

        But above all\u2026 show up<\/strong>.<\/p>\n\n\n\n

        Not everything should be measured, after all. \ud83d\ude09<\/p>\n","protected":false},"excerpt":{"rendered":"

        It\u2019s a phrase I often repeat, but had never actually taken the time to write down. Just yesterday, I was discussing business models with a client. And as often happens, the takeaway was simple: a well-designed company naturally generates the right behaviors \u2014 from both its employees and its partners. Many organizations have lofty ambitions: […]<\/p>\n","protected":false},"author":1,"featured_media":501,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53],"tags":[],"class_list":["post-503","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-enterprise-design"],"_links":{"self":[{"href":"https:\/\/andfriends.ca\/blog\/wp-json\/wp\/v2\/posts\/503","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/andfriends.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/andfriends.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/andfriends.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/andfriends.ca\/blog\/wp-json\/wp\/v2\/comments?post=503"}],"version-history":[{"count":1,"href":"https:\/\/andfriends.ca\/blog\/wp-json\/wp\/v2\/posts\/503\/revisions"}],"predecessor-version":[{"id":504,"href":"https:\/\/andfriends.ca\/blog\/wp-json\/wp\/v2\/posts\/503\/revisions\/504"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/andfriends.ca\/blog\/wp-json\/wp\/v2\/media\/501"}],"wp:attachment":[{"href":"https:\/\/andfriends.ca\/blog\/wp-json\/wp\/v2\/media?parent=503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/andfriends.ca\/blog\/wp-json\/wp\/v2\/categories?post=503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/andfriends.ca\/blog\/wp-json\/wp\/v2\/tags?post=503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}