There is a saying that if you love something let it go, if it comes back it was meant to be. Sometimes companies tend to latch on to their KPIs for too long. The question is how long is too long? There are three ways to figure out if it is time to let go of a KPI:
The KPI has achieved a target and is stagnant
KPIs are meant for measuring very specific metrics and should have specific goals that define the purpose of the KPI. The basic idea behind this is to put into place improvement measures that help the team to achieve those goals. But, the fact is that not everything can be improved upon forever.
For some KPIs when they reach their goals the organization needs to take a step back and ask whether they are a priority anymore or not. If these KPIs have a lower priority since they have achieved their goals as opposed to KPIs that are still in progress then it is time to let those KPIs go.
It is better to pour resources into things that actually need to be improved instead of trying to improve something that has already reached the desired level of improvement.
Change of strategy
As a company grows and changes there are bound to be changes in the strategy and future goals. If the organization has a set of strong, well performing KPIs then their KPIs will be well aligned with their goals and strategies. As changes come about some of these KPIs will no longer be in alignment with the new strategies.
If a KPI no longer aligns with the goals of an organization or a team then it needs to be let go to make space for one that does.
Choosing KPIs is a science but also an art. There are times when a chosen KPI does not measure up to the expectations a team may have had. In the case where a KPI is found to not serve its purpose or found to affect other areas negatively it needs to be let go.
Letting go of KPIs does not mean to just discard them. It means that they do not have a place on your dashboard for the moment.
When letting go of a KPI the best practice is to archive the KPI so that it can be retrieved as and when needed.
Written By: Meghna Verma