Leader's Manual

Performance measurement is a constant in the modern workplace. Entire departments are often dedicated to tracking and evaluating the performance of others. Leaders frequently play a key role in defining these metrics or enforcing those set by the organization. One of the most common tools used for this purpose is the system of Key Performance Indicators (KPIs), which typically consists of quantitative targets and time-based expectations, such as answering 10 phone calls per hour or processing 40 tickets per week. At first glance, this approach may seem like an effective way to ensure productivity, until it isn’t.

All too often, organizations and leaders lose sight of how to use performance metrics and KPIs effectively. Rather than serving as tools to align teams with strategic objectives, these metrics are frequently misused to simply keep employees busy. These can be referred to as “busy-work metrics.” Many companies rely on KPIs that contribute little, or nothing, to broader business goals like increasing efficiency or reducing costs. While this approach is an easy way to fill employees’ time, it can ultimately harm morale, stunt development, and distract from what truly matters to the success of the organization.

Let me give you a real-world example. I once worked on a team of analysts responsible for maintaining call center schedules. Our work came primarily through a ticketing system, and each analyst was expected to process a set number of tickets per month. After a few months on the team, I noticed something troubling: the operational teams submitting tickets to us were struggling to meet their goals. All while my team consistently hit ours. Despite the call center falling short, there was no urgency within our analyst team to step in. We were in a strong position to help by offering insights, reports, and recommendations that could have improved efficiency and better aligned operations with company goals. But we didn’t. Why? Because by performance standards, we were doing exactly what was expected of us. Processing tickets was our only metric, and we were doing great.

There was no drive or encouragement to go beyond ticket processing or contribute in more meaningful ways. It became increasingly clear that the number of tickets our team completed had little to no impact on overall business performance. Regardless of how many we processed, the broader organization continued to fall short of its goals. We had fallen into the trap of relying on busy-work metrics. They kept us occupied, but offered no real value to the company. Upon closer investigation, we saw that morale had deteriorated, leading to many team members no longer feeling motivated to do anything beyond the bare minimum. As Trina Hoefling points out in Working Virtually: Transforming the Mobile Workplace, employees often disengage when they can’t see how their work connects to the bigger picture.

It became clear that we needed to change how the team viewed its work, starting with the performance metrics. Simply counting the number of tickets processed by analysts wasn’t helping the business move forward. To drive real impact, KPIs needed to align directly with business goals. When setting a KPI, ask yourself: Who does this benefit and how? Does it support broader company objectives? Is it truly helpful?

For our team of analysts, we replaced ticket-counting with a more meaningful goal: improving the performance of the teams we supported. Each analyst was assigned to a specific business segment and tasked with using their tools and insights to deliver reports and actionable recommendations. Our success was now measured by how well we helped others succeed.

Practically overnight, we transformed from a team of ticket processors into trusted business advisors. And before long, the call center’s overall performance began trending in the right direction. Many of the analysts discovered a renewed sense of purpose in their work once they understood how their role contributed to the success of the business. Seeing the direct impact of their efforts in real time led to a noticeable rise in engagement, collaboration, and proactive problem-solving. As the authors of Everyday People, Extraordinary Leadership note, organizational effectiveness and employee satisfaction are closely tied to an individual’s belief that they can make a difference within their organization. By redefining the metrics by which our team was evaluated, we didn’t just change how the team operated; we transformed how they felt about their work.

Busy-work metrics are increasingly prevalent in today’s corporate workplaces, especially in the era of widespread remote work, where leaders feel greater pressure to ensure teams stay active. But remember, being busy is not the same as being productive.

When designing performance metrics or KPIs, ask yourself questions like: How does this align with our business strategy? Who benefits from this goal? Will this drive meaningful outcomes or just fill time? If your current metrics don’t support key business objectives, it may be time to reevaluate. Otherwise, you risk creating an environment where teams are overworked, disengaged, and underperforming. Not because they aren’t capable, but because they aren’t being measured in the right ways.

Featured image by Loui Kiaer on Unsplash