Bertrand Duperrin's personal annotations on this page
Bertrandduperrin bookmarked
on 2009-06-21
In the industrial economy, we had lots of ways of measuring our work. It was a mostly physical process so we could literally see what was going on. Our financial systems were built around this industrial model and we could also put dollar values on products as they progressed through factories and machines, converting raw materials into finished goods.
The shift to a knowledge economy has changed that. A lot of the value created today happens inside peoples’ heads or their computers. This is the case in service and technology businesses but even in manufacturing settings where it is the process, not the product, that creates so much of the value.
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Well here’s what worries me. KPI’s are by definition a small number of indicators. There is no guarantee that KPI’s are the right metrics. And they can be manipulated.
This link has been bookmarked by 1 people . It was first bookmarked on 21 Jun 2009, by Bertrand Duperrin.
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Bertrand Duperrin
In the industrial economy, we had lots of ways of measuring our work. It was a mostly physical process so we could literally see what was going on. Our financial systems were built around this industrial model and we could also put dollar values on products as they progressed through factories and machines, converting raw materials into finished goods.
The shift to a knowledge economy has changed that. A lot of the value created today happens inside peoples’ heads or their computers. This is the case in service and technology businesses but even in manufacturing settings where it is the process, not the product, that creates so much of the value.-
Well here’s what worries me. KPI’s are by definition a small number of indicators. There is no guarantee that KPI’s are the right metrics. And they can be manipulated.
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