Sprinting... but in the wrong direction

If you've ever been in charge of anything (or if you're about to be), here's one common scenario: There’s a lot going on, and while you’re trying to keep everything moving forward, you need a way to track progress without micromanaging. So, naturally, you reach for some KPIs.

Key Performance Indicators (KPIs) should help teams focus on the right goals and measure success – without all the guesswork. But setting the wrong KPIs can be a disaster, especially in remote settings. So, how do you set KPIs that keep your team on track and motivated, instead of burning out, while also giving you an overview of the situation without causing another headache?

What Are KPIs, Anyway?

In case you’re not familiar, KPIs are measurable values that help you track whether you or your team are hitting your goals. Think of them as your business's scoreboard. The clearer and more relevant your KPIs are, the easier it is to steer the ship in the right direction, whether you’re sitting next to your team or sending them a Slack message from halfway across the world.

Spotting Bad KPIs

Not all KPIs are created equal. Some look impressive on paper but actually pull focus away from what truly matters. Here’s how to spot the ineffective ones:

1. Super Vague KPIs: “Just Be Better.”

• Example: “Increase overall productivity.”
• Why it’s wrong: What does “be better” even mean? This type of KPI doesn’t give your team any direction or tangible target. Without specifics, it’s like trying to hit a bullseye that’s constantly moving.

2. Counting Activities Instead of Measuring Outcomes

• Example: “Attend 5 virtual meetings every week.”
• Why it’s wrong: Just attending meetings doesn’t mean progress is happening. You’re measuring activity, not results, which is a recipe for frustration, especially when your team is juggling multiple projects.

3. Unrealistic KPIs That Lead to Burnout

• Example: “Answer all emails within 30 minutes, 24/7.”
• Why it’s wrong: You might as well add “Never sleep” to that list. Over-demanding KPIs like this set your team up for stress, exhaustion, and resentment. Remote work is about flexibility, and unrealistic expectations ignore that balance.

4. One-Size-Fits-All KPIs

• Example: Applying the same KPIs for a remote marketing team as you would for a development team.
• Why it’s wrong: Your devs are writing code, your marketers are creating campaigns – these aren’t the same thing. Applying generic KPIs to everyone will just confuse your teams and make them feel like their unique contributions aren’t valued.

5. No One Uses Them to Make Decisions

• Example: “We set KPIs to track website traffic and sales conversions, but the team rarely refers to them when making decisions.”
• Why it's wrong: If no one is using the KPIs to make decisions, it means they aren't serving their purpose. KPIs should help drive action, guide strategy, and support decision-making. When they're ignored, it’s a sign they’re either irrelevant, too complicated, or disconnected from the team’s daily work. Essentially, they’re just numbers on a page that don’t translate into meaningful insights or improvements.

Setting the Right KPIs

Now, let’s talk about what makes a KPI truly effective.

? Tie Them to Business Impact

KPIs should track results, not just effort.

• Instead of “Complete 10 tasks per week,” try “Complete 80% of tasks by the deadline with no quality issues.”
• Instead of “Log 40 hours per week,” focus on “Increase individual task efficiency, completing 5% more projects each month.”

When you measure results, it’s easier to see actual productivity rather than just activity, especially when you can't physically observe your team.

? Make Them Measurable & Achievable

A good KPI is clear, specific, and realistic.

• Vague: “Be more productive.”
• Better: “Submit weekly status reports with 95% of tasks completed on time for the next two months.”

For remote workers, clear KPIs help them know exactly what’s expected. Vague goals only leave room for confusion and frustration when they can't interact face-to-face for clarification.

? Keep Them Relevant

KPIs should evolve as your business priorities shift.

• A startup focused on building the team might use “Onboard 2 new clients per month.”
• Later, as remote team engagement becomes a priority, it might shift to “Increase team collaboration by 25% through bi-weekly check-ins and project feedback sessions.”

Since remote teams often have shifting priorities due to dynamic work environments, it’s important for KPIs to reflect what’s most important at the moment.

? Ensure Buy-In

If your team doesn’t believe in a KPI, they won’t be motivated to achieve it.

• Example: If a sales team is told to “Close 50 deals per month,” but they don’t have enough leads or are managing poor-quality leads, they’ll feel demotivated and frustrated.
• Instead, try “Increase deal size from $5,000 to $7,000 on average,” which motivates focusing on quality over quantity and gives them something they can control, even from a distance.

When employees feel they have ownership and that their goals are realistic, they’re more likely to be invested in achieving them.

What to Do with KPIs: Making Them Work for You

So, you’ve set the perfect KPIs. Now what? Time to put them to good use! Here’s how to make sure your KPIs aren’t just numbers on a page, but actual drivers of progress:

1. Track, Track, Track: KPIs only work if you’re actively tracking them. Whether you’re using Asana, Trello, or even a good old spreadsheet, make sure you’re regularly checking in on progress.

2. Offer Support, Not Just Criticism: It’s not enough to just say, “You didn’t hit that KPI.” Provide your team with the tools, feedback, and support they need to meet their goals. Don’t forget: they’re remote, so clear communication is essential.

3. Acknowledge & Appreciate: When KPIs are hit, shout it from the rooftops! Remote teams need recognition just like in-office teams, if not more. Celebrate milestones and accomplishments to keep morale high.

4. Learn from Failures: Not every KPI will be a win, and that’s okay. Use missed targets as opportunities to learn. Ask: What happened? What can we adjust? And how can we do better next time?

5. Keep Adjusting: Remote work doesn’t stay static, so your KPIs shouldn’t either. Stay flexible, track results, and be open to tweaking things along the way to keep your team on course.

Wrapping Up

KPIs should drive action, not just sit in a report. When designed well, they help your team stay focused on what truly matters, remain motivated, and make smarter decisions.

So, take a hard look at your current KPIs: are they guiding you forward or just keeping you busy? If it’s the latter, it’s time for a reset.

If you found this article valuable:

• Follow me for more articles on remote team processes, tips and hiring ? Milos Eric
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