Real World Leadership

Leadership One Day at a Time

Category: Culture

  • Selecting the Right KPIs for Your Organization’s Success

    Selecting the Right KPIs for Your Organization’s Success

    Moving from Data Overload to Strategic Clarity

    We live in a world obsessed with data. Dashboards light up with numbers. Reports overflow with charts. Every metric seems to demand your attention.

    And yet—many organizations still can’t say with confidence whether they’re actually winning.

    The issue isn’t the lack of data. It’s the lack of direction.

    KPIs—Key Performance Indicators—only create value when they illuminate progress toward what truly matters. Without strategic intent behind them, they’re just noise with a spreadsheet attached.

    Choosing the right KPIs isn’t about measuring everything. It’s about measuring the right things—the few signals that cut through distraction and show whether your organization is moving in the direction you said it would.

    Beyond “What Gets Measured Gets Managed”: The Deeper Truth

    The adage “What gets measured gets managed” is powerful, but it’s often incomplete. The deeper truth is: “What gets measured strategically, gets managed effectively.” Without a strategic lens, you risk managing noise, pursuing “vanity metrics” that look good on paper but offer no real insight, or worse, driving behaviors that actively undermine your long-term success. The journey to better KPIs is less about a single destination and more about a continuous loop of learning, adaptation, and strategic alignment.

    Step 1: Start with “Why” — Let Strategy Lead

    Before you pick a single metric, step back and ask: What’s our purpose right now?

    What are we really trying to achieve in the next year or two? Are we trying to grow market share? Improve retention? Strengthen culture? Reduce friction?

    KPIs should follow strategy, not the other way around. If you start with the numbers, you’ll end up managing noise. But if you start with purpose, your metrics become a compass—pointing everyone toward a shared goal.

    When your direction is clear, the right indicators practically reveal themselves. When it’s not, every metric feels urgent but none are truly important.

    Step 2: Translate Intent into Measurable Outcomes

    Once the strategic “why” is clear, define how success will look in tangible terms.

    If your objective is to strengthen customer loyalty, what would proof of that look like? Higher repeat purchase rates? Stronger Net Promoter Scores?

    If your goal is to improve efficiency, where should you see the impact? Faster fulfillment? Lower error rates? Better utilization?

    The key is to make outcomes visible and measurable—so you can tell, without debate, whether progress is being made.

    The most effective KPIs aren’t random metrics; they’re signals of success, anchored in the outcomes that matter most.

    Step 3: Focus on the Vital Few

    The temptation is to track everything. After all, data feels safe. But the truth is, too many metrics create paralysis, not precision.

    When everything is a priority, nothing really is.

    Instead, choose a handful of indicators that carry the most meaning. Five to seven (5-7) key measures at the organizational level is usually enough more than tends to muddy the waters of what is truly important. Beneath that, each team might own two or three (1-3) that directly connect to those broader goals.

    The discipline is in restraint. Fewer metrics sharpen focus, create clarity, and make wins visible.

    Step 4: Make KPIs Actionable, Not Just Interesting

    A KPI should drive decisions. When it moves up or down, you should immediately know what that means and what to do about it.

    If a metric doesn’t inspire action, it’s not a KPI—it’s trivia.

    Good KPIs are specific, measurable, realistic, and time-bound. But most importantly, they’re relevant. They’re directly tied to what you’re trying to achieve and easily understood by the people doing the work.

    Measurement without action is motion without progress.

    Ensuring Your KPIs are SMART and Actionable

    Beyond S.M.A.R.T. ensure your KPIs are actionable. A good KPI should provide insights that lead to specific actions. If you see a dip or spike, it should tell you what needs to be done. If a KPI is declining, does it immediately suggest a potential intervention or area for investigation? If not, it might be an interesting metric, but perhaps not a powerful KPI.

    Step 5: Ownership and Communication Are Everything

    A KPI without a clear owner quickly becomes an orphan. Every key metric should have someone accountable—not just for tracking it, but for understanding it, questioning it, and driving improvement.

    Just as critical is communication. Everyone in the organization should know:

    • What we’re measuring
    • Why it matters
    • How it connects to the work they do

    Clarity here creates engagement. People care more when they see how their effort moves the needle.

    Step 6: Keep It Alive — Review, Learn, Evolve

    The right KPIs today might not be the right ones a year from now. Markets shift. Strategies mature. Priorities evolve.

    Make KPI review a rhythm, not a reaction. Check regularly: Are we still measuring what matters? Are these numbers still tied to our mission?

    Don’t hesitate to drop a metric that no longer tells you something useful. Agility in measurement keeps your strategy fresh and your teams focused on the work that truly drives impact.

    The Payoff

    When KPI selection is done with intention, the benefits ripple across the organization.

    People gain clarity on what success looks like. Teams make faster, more confident decisions. Energy flows toward what matters instead of scattering across distractions.

    You move from reporting activity to managing results.

    And that shift—from measurement to meaning—is what separates busy organizations from effective ones.

    Because at the end of the day, the goal isn’t to measure more. It’s to measure what moves you forward.

    References

    These sources are great if you want to dive deeper into this topic.

    Collins, Jim. Good to Great: Why Some Companies Make the Leap…And Others Don’t. HarperBusiness, 2001. (This book’s emphasis on disciplined thought, the Hedgehog Concept, and focusing on what you can be “best in the world at” implicitly underpins the “Vital Few” and strategic alignment principles of effective KPI selection).

    Drucker, Peter F. “The Practice of Management.” Harper & Row, 1954. (Widely attributed with the concept “What gets measured gets managed,” though the exact phrasing and context have evolved over time).

    Parmenter, David. Key Performance Indicators: Developing, Implementing, and Using Winning KPIs. 3rd ed., Wiley, 2020. (A comprehensive resource on KPI best practices, reinforcing concepts like the “vital few” and strategic alignment).

    Doran, George T. “There’s a S.M.A.R.T. way to write management’s goals and objectives.” Management Review, vol. 70, no. 11, 1981, pp. 35-36. (This article introduced the SMART criteria for goal setting, which is directly applicable to KPI definition).

  • AI’s Missing Piece: Organizational Change, the Key to Real Value

    AI’s Missing Piece: Organizational Change, the Key to Real Value

    Organizational change is crucial to any business transformation. However, Artificial intelligence (AI) is no longer a futuristic fantasy; it’s rapidly becoming a core component of business strategy across industries. Companies are investing heavily in AI technologies, from automation and predictive analytics to personalized customer experiences. However, simply implementing cutting-edge AI tools doesn’t guarantee success. In fact, without a critical and often overlooked element – organizational change management – many AI initiatives are destined to fall short of their potential, failing to achieve proper adoption, true enablement, and ultimately, a full return on investment.

    Think of it this way: introducing AI into an organization is like transplanting a sophisticated new engine into a car. While the engine itself might be powerful and efficient, if the car’s chassis, transmission, and the driver aren’t prepared for it, the new engine won’t deliver its promised performance. The entire system needs to adapt and be ready to harness the new power.

    Digital Transformation Requires More Than Just Digits

    Even in broader digital transformation efforts, the importance of organizational change cannot be overstated. Introducing new software, cloud infrastructure, or digital workflows impacts how people work, collaborate, and make decisions. Without a structured approach to manage these changes, companies often face resistance, low adoption rates, and ultimately, a failure to realize the intended benefits of their digital investments.

    AI Transformation Amplifies the Need for Change

    The need for robust organizational change management becomes even more critical with AI transformations. Here’s why:

    Fundamental Shifts in Workflows: AI often automates tasks previously performed by humans, requiring significant shifts in job roles and responsibilities. Employees may need to learn new skills, collaborate with AI systems, and focus on higher-value activities. Without proper guidance and training, this can lead to anxiety, resistance, and underutilization of AI capabilities.

    New Ways of Thinking and Decision-Making: AI can provide insights and recommendations that challenge traditional ways of thinking. Employees and leaders need to develop the ability to interpret AI outputs, understand its limitations, and integrate AI-driven insights into their decision-making processes. This requires a shift in mindset and a willingness to trust and collaborate with intelligent systems.

    Data-Driven Culture: Successful AI relies heavily on data. Organizations need to cultivate a data-driven culture where data is valued, understood, and used effectively across all levels. This involves establishing clear data governance policies, ensuring data quality, and empowering employees with the skills to interpret and leverage data insights.

    Ethical Considerations and Trust: AI implementation raises important ethical considerations regarding bias, transparency, and accountability. Organizations need to proactively address these concerns, build trust in AI systems, and establish clear guidelines for their responsible use. This requires open communication, education, and the involvement of stakeholders across the organization.

    The “Black Box” Challenge: Some AI algorithms can be complex and difficult to understand, leading to a “black box” perception. Building trust and encouraging adoption requires demystifying AI, explaining its logic in accessible terms, and demonstrating its value and reliability. Organizational change efforts can facilitate this understanding and build confidence.

    The Path to Successful AI: Integrating Organizational Change

    To truly unlock the value of their AI investments, organizations must integrate organizational change management into every stage of their AI journey. This involves:

    Clear Vision and Communication: Articulating a clear vision for how AI will benefit the organization and its employees is crucial. Open and transparent communication throughout the process helps to address concerns, build excitement, and foster buy-in.

    Stakeholder Engagement: Involving employees from all levels and relevant departments in the AI planning and implementation process is essential. Understanding their perspectives, addressing their concerns, and incorporating their feedback increases the likelihood of successful adoption.

    Comprehensive Training and Enablement: Providing targeted training programs that equip employees with the new skills and knowledge required to work effectively with AI systems is paramount. This includes technical skills, understanding AI outputs, and adapting workflows.

    Iterative Implementation and Feedback Loops: AI implementation should be an iterative process with continuous monitoring and feedback. Gathering input from users and making adjustments based on their experiences ensures that the AI solutions are meeting their needs and being adopted effectively.

    Leadership Buy-in and Championing: Strong leadership support is critical for driving organizational change. Leaders must champion the AI initiatives, communicate their importance, and actively participate in the transformation process.

    Measuring and Celebrating Successes: Tracking key metrics related to AI adoption, enablement, and business impact is essential for demonstrating the value of the investment and reinforcing positive change. Celebrating early successes can build momentum and encourage further adoption.

    Overcoming Fears of Job Displacement: A significant hurdle in AI adoption is the natural fear among employees that these intelligent systems will lead to job destruction and elimination. Recent announcements from companies like Klarna, declaring an “AI-first” strategy with potential impacts on customer service roles, and Duolingo’s integration of AI tutors, while showcasing innovation, can understandably trigger anxiety within their workforces and across the broader job market. It is crucial for organizations to proactively address these fears by clearly articulating how AI will augment human capabilities rather than simply replace them. Emphasize the creation of new roles that require uniquely human skills like creativity, critical thinking, and complex problem-solving, which AI can support but not fully replicate. Transparent communication about the evolving roles, coupled with robust reskilling and upskilling initiatives, is vital to alleviate anxiety and foster a collaborative mindset towards AI. Highlighting how AI can automate mundane tasks, freeing up employees for more engaging and strategic work, can also help shift the narrative from job elimination to job evolution.

    Wrapping this up

    AI holds immense potential to transform businesses, but technology alone is not the magic bullet. Successful AI implementation hinges on the organization’s ability to adapt, evolve, and embrace new ways of working. By prioritizing organizational change management, companies can ensure proper adoption, empower their employees, and ultimately, fully realize the transformative power and significant return on investment that AI promises. Ignoring this crucial element is a recipe for underutilized technology and missed opportunities in the age of intelligent automation.

  • Eliminating Inefficiencies: Structural Friction in the Workplace

    Eliminating Inefficiencies: Structural Friction in the Workplace

    Alright, let’s dig into one of the sneakiest kinds of workplace headaches: structural friction. Think of it like the underlying design flaws in a building that make everything just a little bit harder than it needs to be. It’s not about personalities clashing or a bad day; it’s baked into how the whole darn thing is set up.

    As someone who geeks out on how workplaces actually work (not just how they’re supposed to), I see structural friction pop up in all sorts of ways. It’s the kind of stuff that makes you think, “Why on earth do we do it this way?” and the answer is often, “Because that’s how it’s always been,” or worse, “Nobody really knows anymore.”

    So, what exactly are we talking about when we say “structural friction”? It’s the friction that comes from the very bones of the organization – its hierarchy, its processes, its systems, even its physical layout. It’s the stuff that slows everyone down, even the most motivated and talented people.

    Let’s break down some common culprits:

    The Silo Shuffle: You know this one. Different departments or teams operate in their own little worlds, barely talking to each other. Information gets hoarded, goals aren’t aligned, and it feels like you’re constantly trying to get someone in another team to just do their part. It’s like trying to build a house where the plumbers refuse to speak to the electricians.  

    The Bureaucracy Maze: Oh boy, this is a classic. Layers upon layers of approvals, endless forms, and rules that seem to exist for their own sake. You need permission to get permission to ask a question. It’s the kind of environment where getting a simple thing done feels like navigating a labyrinth. Innovation? Forget about it – who has the energy to wade through all that red tape?

    The Information Black Hole: This is where crucial information is either impossible to find, scattered across a million different platforms, or just plain doesn’t exist when you need it. You spend half your day hunting down that one document or trying to figure out who knows the answer to a basic question. It’s like trying to cook a meal when all the ingredients are hidden in different cupboards with no labels.

    The Tool Tango: You’ve got a dozen different software programs that don’t talk to each other, clunky legacy systems that crash at the worst possible moment, or tools that are so complicated they require a PhD to operate. Instead of making things easier, the technology itself becomes a source of constant frustration and wasted time. It’s like trying to build something with the wrong set of tools.

    The Unclear Ladder: When it’s not obvious how you grow in the company, what skills are valued, or what the career paths even look like, it creates friction. People feel stuck, unmotivated, and might start looking elsewhere. It’s like driving without a map – you’re not sure where you’re going or how to get there.

    What can We do?

    So, how do you go about smoothing out this deeply ingrained structural friction? It’s not a quick fix, and it often requires a willingness to shake things up a bit. Here are some ideas:

    Break Down the Silos: Encourage cross-functional collaboration through joint projects, shared goals, and regular inter-team communication. Create opportunities for people from different departments to actually talk and understand each other’s work.  

    Simplify the Bureaucracy: Take a long, hard look at your processes. Are all those approvals really necessary? Can forms be digitized? Are there steps that just add time without adding value? Streamlining processes can free up a ton of wasted energy.

    Create a Knowledge Hub: Invest in a centralized system for information sharing that’s easy to navigate and search. Make sure everyone knows where to find what they need. Think of it as creating a well-organized kitchen where all the ingredients are clearly labeled and easy to grab.

    Integrate Your Tech: Aim for a tech stack that works together seamlessly. Invest in training to make sure everyone knows how to use the tools effectively. Sometimes, it might even mean biting the bullet and upgrading outdated systems.  

    Clarify Career Paths: Be transparent about how people can grow within the organization. Outline clear career paths, identify necessary skills, and provide opportunities for development.

    Smoothing out structural friction isn’t just about making things more efficient; it’s about creating a more human-friendly workplace. When people aren’t constantly battling unnecessary obstacles, they’re happier, more engaged, and ultimately more productive. It isn’t easy and takes effort and a willingness to challenge the status quo, but the payoff – a smoother, more effective, and less frustrating work environment – is well worth it.

  • The Soul in the Machine: Reclaiming the Human Element in the Age of AI at Work

    The Soul in the Machine: Reclaiming the Human Element in the Age of AI at Work

    Alright, let’s have a real heart-to-heart about this whole AI thing shaking up our work lives. As someone who’s spent years watching how people tick at work, the tech side of AI is cool and all, but what about the human side of it. Because at the end of the day, it’s about us, right? How we feel, how we adapt, and how we keep that human spark alive when the robots start doing some of our old jobs.

    So, picture this: AI strolls into the office, not in a clanky robot suit (yet!), but as software, algorithms, the whole shebang. Suddenly, some of the stuff you used to spend hours on – sorting spreadsheets, answering the same old customer questions, even drafting basic reports – poof! The AI can handle it in a fraction of the time.

    Now, for some folks, this feels like winning the lottery. Imagine being freed from those tasks that make your eyes glaze over. You can finally focus on the stuff you actually enjoy, the creative problem-solving, the chatting with clients and building real connections, the big-picture thinking. It’s like having a super-efficient assistant who takes care of the grunt work so you can shine.

    But let’s be real, for others, this feels… well, a bit scary. You might be thinking, “Wait a minute, that was my job. If the computer can do it, where do I fit in?” That knot of anxiety in your stomach? Totally understandable. It’s a natural human reaction to change, especially when it feels like your livelihood is on the line.

    And that’s where companies really need to step up and show their human side too. Just throwing in the latest AI without a thought for the people it affects is a recipe for a grumpy, resistant workforce. So, what are the smart companies doing to navigate this and keep everyone on board?

    First off, talking, like, really talking. None of that corporate jargon that makes your brain switch off. I’m talking clear, honest conversations about what’s changing, why it’s changing, and, crucially, how it’s going to affect you. Companies need to paint a realistic picture, not just the shiny, futuristic one. They need to say, “Okay, this task will be automated, but that means you’ll have the chance to learn this new skill and work on this more interesting project.” It’s about being straight with people and not hiding the potential downsides.

    Then comes the super important part: teaching and training. If AI is going to change the game, companies have a responsibility to equip their players with new skills. Think of it like leveling up in a game. Your old skills might still be useful, but there are new ones you need to learn to thrive in this AI-powered world. This could be anything from learning how to work with the AI tools, understanding the data it spits out, or even developing entirely new skills that are more human-centric, like emotional intelligence or complex communication. Companies that invest in their people this way aren’t just being nice; they’re being smart. A skilled and adaptable workforce is way more valuable in the long run.

    But it’s not just about the hard skills. It’s also about fostering a culture of collaboration, not competition, with AI. The message needs to be: AI is a tool to help us, not replace us. Think of it like a super-powered calculator for your brain. It can do the heavy lifting, freeing you up to do the creative, strategic stuff that machines just aren’t good at. Companies that encourage their teams to experiment with AI, to give feedback, and to find ways where humans and AI can work together best are the ones that will see real success.

    And let’s not forget the human touch. In a world increasingly driven by algorithms, the uniquely human skills – empathy, creativity, critical thinking, the ability to connect with others on a real level – become even more valuable. Companies should actively nurture these skills, creating opportunities for collaboration, brainstorming, and those water cooler moments where real ideas spark. It’s about reminding everyone that even with all this fancy tech, the human element is still what makes a business truly thrive.

    Leadership plays a massive role in all of this. If the folks at the top are nervous about AI or just see it as a cost-cutting measure, that attitude will trickle down. But leaders who are genuinely excited about the possibilities, who communicate openly and honestly, and who show they care about their employees’ well-being are the ones who will build trust and inspire their teams to embrace the change.

    So, it’s about remembering that this isn’t a one-size-fits-all situation. The impact of AI will be different for different roles and different people. Companies need to be flexible and adaptable in their approach, listening to individual concerns and tailoring their support accordingly.

    Look, AI isn’t going anywhere. It’s going to keep changing the way we work. But if we focus on the human side of this revolution – by communicating openly, investing in our people, fostering collaboration, and valuing those uniquely human skills – we can navigate this change in a way that benefits everyone. It’s not about the soul versus the machine; it’s about finding a way for them to dance together, creating a workplace that’s both efficient and, well, still feels human. And that, to me, is the most important part of all.