{"id":16491,"date":"2021-10-31T13:46:36","date_gmt":"2021-10-31T07:46:36","guid":{"rendered":"https:\/\/bbf.digital\/new\/?p=16491"},"modified":"2025-07-20T11:51:42","modified_gmt":"2025-07-20T05:51:42","slug":"kpi-theres-more-than-what-meets-the-eye","status":"publish","type":"post","link":"https:\/\/bbf.digital\/new\/kpi-theres-more-than-what-meets-the-eye","title":{"rendered":"KPI – There’s more than what meets the eye"},"content":{"rendered":"

KPIs are indeed an integral part of an organization\u2019s work structure since it brings upon responsibility and paves the way towards key objectives which further enforces an outline of decision-making so as to transform objectives into achievable goals; creates a realistic measure of success and quantifies the change in performance with assigned numerical figures based on mapped out models differing from organization to organization. It does not only empower employees by allowing them to express individualism through the freedom of constructive decisions under an ascertained circumference from core management, it further goes into causing work to become interdependent by breaking down roles and responsibilities across individuals, groups, and departments.\u00a0<\/span><\/p>\n

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How are KPIs mapped out?<\/span><\/p>\n

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Just as objectives are designed as being SMART \u2013 Specific, Measurable, Achievable Realistic and Time-bound – KPIs are mapped out as being so too. As an example, it would be rather vague if an organization constructed a KPI of \u201cincreasing customer conversion\u201d. It would be SMART if an organization sets out a plan of \u201cachieving a conversion rate of 4% within the span of 12 months\u201d. Consequently, relevant plans of action are undertaken by the marketing department with decisions being passed down from the Chief Marketing Officer down the hierarchy \u2013 in most cases.<\/span><\/p>\n

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A business sets out its targets aligned with objectives and sets out KPIs as a direction-giving instrument for all internal stakeholders involved.<\/span><\/p>\n

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KPIs and Interdependence<\/span><\/p>\n

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Be it in terms of an individual, a team or even as an organization, the curveball road of success can be made simpler if all key components are harmonized in symphony. Believe it or not, KPIs does so too.\u00a0<\/span><\/p>\n

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Imagine baking a cake for example. Unless you do not know the proportions of ingredients and the temperature required in the oven, things can go horribly wrong. One may probably end up with a cake that ended up \u201cnot baking\u201d or failed to rise as expected if he\/she does not know the proportions. Once the relevant pieces of information are known, the one who buys the ingredients knows exactly how much to buy. The one who mixes the ingredients, knows exactly how much of it to incorporate into the mixture, and the one who bakes, knows exactly how many standard length episodes of a series can be streamed while the cake goes through magic inside the oven.<\/span><\/p>\n

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Likewise, once the Key Performance Indicators to achieve are known, departments know how to perform and what to achieve, groups know what tasks to fulfill and individuals know the levels of contribution required.<\/span><\/p>\n

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Taking the example of a customer service department into consideration, under standard scenarios, customer service agents are assigned with several KPIs in terms of resolutions, productivity, etc. In reality, these assigned scores are aligned with objectives passed down by the upper layer of management since the organization itself has larger goals to achieve. The beauty lies within the fact that by doing so, all the gears are somehow synchronized to work efficiently causing interdependence. The head of the department and a random agent is somehow bound by the same fate revolving around each other\u2019s work performance.\u00a0<\/span><\/p>\n

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Due to the sense of interdependence being established on a rather subconscious plane, according actions tend to follow. While the random employee tries his\/her best to meet his targets drawn around several financial and non-financial incentives, he\/she also develops the tendency of taking responsibility. That is because of the fact that at the end of the quarter or assigned time-period, his\/her performance would resonate, propagate and be a key player in providing the overview of the entire team\u2019s performance.\u00a0<\/span><\/p>\n

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Subsequently, the sense of responsibility may even converge into probable motivation derived since the weight of the organization is somehow being carried by random employees too. A bad move would have the chance to stain the entire organization\u2019s image depending on the severity of the mishap and an achievement would also have the chance to add on benefits to the organization itself. With such matters being put to thought, KPIs also contribute to shared organizational pride brought down from fiscal year to fiscal year.\u00a0<\/span><\/p>\n

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Additionally, KPIs tend to bring teams together and strengthen work relations which makes way for effective communication channels being created formally and socially. This is more of an added benefit of KPIs but still happens to be a key driver of being able to interact and create networks with differing teams and departments of the same organizational roof.<\/span><\/p>\n

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In the event of a good fiscal year whereby most KPIs are met, all stakeholders feel accomplished and this somehow creeps into affecting their personal lives with positivity. In contrast, the exact opposite happens when most KPIs are not met.<\/span><\/p>\n

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KPI theory and Sociology<\/span><\/p>\n

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From more of a functionalist view, KPIs provide purpose to employees and decision makers. Without purpose, no need may be found to work at all. The functional utility is derived when decisions need to be made under financial and non-financial constraints.<\/span><\/p>\n

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As an example, an employee is paid to carry out his\/her tasks and responsibilities mentioned clearly within a job description. Assigning KPIs, allows the employee to work efficiently and not run around in randomized paths and in turn he\/she is paid. The payment is earned because the employee manages to fill in the duties expected in return.<\/span><\/p>\n

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In contrast, avid users of the conflict perspective may claim that KPIs contribute to the creation of a glass ceiling to identify over-achievers who are rewarded with ascribed statuses and sets out others as anomalies who feel shunned by themselves in failure to achieve.\u00a0<\/span><\/p>\n

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In reality, the benefits of KPI are not only kept within the workplace. As sentient beings, we naturally instill traits within ourselves as we tend to adapt to the habitat we are in. It is not wrong to presume that a person who works with strict deadlines and works under mapped out plans of action is also an integral part of the web of social interdependence.<\/span><\/p>\n

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As an example, why is it that in most cases seasoned corporate personnel tend to be decisive and punctual? A core contributor to the development of such a trait happens to be KPIs themselves. Working under achievable goals, organizational workers tend to develop traits of realizing the essence of time and responsibilities. The perfect mixture of life and work is achieved when an employee knows exactly how much hard work is required. Yet, on the contrary, those who fail to achieve KPIs and perform accordingly tend to be underperforming in their social lives too. As such, it adds up to frustration and creates a subconscious sense of being treated differently since incentives are lost when KPIs are not met.<\/span><\/p>\n

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Furthermore, in doing so, executives are able to emerge as being self-reliant, self-motivated and develop an understanding of overall societal interdependence with their actions having consequences for all stakeholders outside the organization as well.<\/span><\/p>\n

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However, in order to truly understand the insight that has been brought to light, the context needs to be understood from a \u201cnot so superficial\u201d point of view and the insight that can be derived from the operation of KPIs is deciphered. And this insight will indeed vary from person to person under individualism.<\/span><\/p>\n

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KPI \u2013 under scope of Maslow<\/span><\/p>\n

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Maslow\u2019s hierarchy of needs has always set itself out as a prominent theory of motivation. However, the model can actually be applied to KPIs as well.<\/span><\/p>\n

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Physiological Need<\/b>: The need for the existence of a KPI in order to understand the volume of work and contribution.<\/span><\/p>\n

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Knowing so, the employee is able to allocate his\/her hours of the day accordingly to establish work-life balance and fulfill the commitments around his\/her life.<\/span><\/p>\n

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Safety Need:<\/b> A quantifiable figure that sets the floor numerical margin to be met individually, as teams and as departments.<\/span><\/p>\n

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As such, the employee knows the targets to achieve in order to secure his\/her job and attain the necessary incentives assigned as per the targets.<\/span><\/p>\n

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Love and Belonging:<\/b> The interdependence created from KPIs established and the collaboration of teams, individuals and groups mutually create a sense of belonging and the feeling of acceptance.<\/span><\/p>\n

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Since working individuals statistically tend to spend most of their hours of the day with colleagues, this part of the hierarchy plays a pivotal role in an employee\u2019s growth within their organizational life.<\/span><\/p>\n

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Esteem: <\/b>Since KPIs revolve around incentives, being able to achieve allocated targets inevitably allows a sense of fulfilment to be attained. In most cases, top performers are recognized within the organization and provided with tokens of appreciation.\u00a0<\/span><\/p>\n

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As such, it adds on more to an employee’s organizational life through empowerment and a sense of achievement.<\/span><\/p>\n

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Self-actualization: <\/b>In the event of being able to achieve KPIs, employees are able to gauge their potential and elevate their urge to do more and achieve more. Being the top of the hierarchy, once the true insight of KPIs are realized and chased after, employees are able to live up to their true potential contributing to the organization via the values and impact the brand itself stands for.<\/span><\/p>\n

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Following so, employees are able to grow as individuals and cause their ambitions to pave way towards fulfillment: professionally and personally.<\/span><\/p>\n

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Friend or Foe?<\/b><\/p>\n

KPIs are highly debated with each context being expressed from varying points of view. The line of division exists amongst two groups – one that is able to achieve KPIs and the other that fails to. However, there are organizations with unrealistic KPIs – which is a different topic to discuss. Under the light of this article, KPIs are friendlier for those who tend to identify the deciphered meaning behind actions of interest and their consequences. It would inevitably become a foe for those who find KPIs to be only numerical targets to chase.<\/span><\/p>\n

By\u00a0 Mohaimenul Solaiman Nicholas<\/em><\/strong><\/p>\n

\u00a0<\/span><\/p>\n\n

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    \n\t\t\t <\/ul>\n <\/div> \n","protected":false},"excerpt":{"rendered":"

    KPIs are indeed an integral part of an organization\u2019s work structure since it brings upon responsibility and paves the way towards key objectives which further enforces an outline of decision-making so as to transform objectives into achievable goals; creates a realistic measure of success and quantifies the change in performance with assigned numerical figures based […]<\/p>\n","protected":false},"author":12,"featured_media":16492,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[613],"tags":[1262],"class_list":["post-16491","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-premium-content","tag-premium"],"yoast_head":"\nKPI - There's more than what meets the eye | BBF Digital<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bbf.digital\/new\/kpi-theres-more-than-what-meets-the-eye\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"KPI - 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