Why you should stop fixating on KPIs
Didier Elzinga and Ben Crowe urge leaders to focus on promoting innovation and creativity, rather than bonuses. Photo: Dominic Lorrimer

Why you should stop fixating on KPIs

If you’re under the pump right now, you’re not alone.

Businesses are finding it harder to make money as consumers shut their wallets and rising input costs and higher interest rates eat into profit margins.

So, bosses are pressuring managers to do more with less and doubling down on key performance indicators to weather the storm.

It’s an approach that makes sense at first glance. But Culture Amp chief executive Didier Elzinga and mentor and leadership coach Ben Crowe , who has worked with sporting stars Ash Barty and Dustin Martin, argue it’s counterproductive.

Reiterating and even tightening KPIs in the face of a tough market, is a boss's way to try and control the uncontrollable, but there's no controlling clients or competitors. Bosses would be better off encouraging their staff to be more curious and experimental, says Crowe.

“We need to become more open-minded. As soon as you tap into curiosity, you turn adversity into possibility,” he says.

More on that story here.



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Do you need a degree to succeed in a white collar profession?

University enrolments are on the decline as more high-school leavers are skipping campus life and heading straight to the workforce – and not just the trades.

White-collar employers are showing an openness to employees taking non-university pathways to enter an array of different professions to address labour shortages and pump up their diversity acquisition.

Tony Nguyen, is a final-year trainee at KPMG. Photo: Dominic Lorrimer

The pitch to school-leavers goes like this: In an era of unaffordable housing and declining real incomes, taking on a big student debt is no longer the price you have to pay for a decent job and a stable career. You can earn while you learn instead.

As part of this trend, KPMG has a three-year tech traineeship that involves students spending four days a week working in its technology business and one day a week studying for a tertiary qualification in IT at TAFE NSW.

And Chartered Accountants Australia and New Zealand will launch an apprenticeship-like training scheme for school-leavers in February that will give them a way of becoming a chartered accountant without a degree.

Perhaps unsurprisingly, universities are less enthusiastic about this plan, saying it risks tarnishing the profession’s reputation and could lead to poorer audit quality. Details on that response here.


The one family rule these married co-CEOs (and ex-EY execs) stick to

Simone and Matt Rennie have a lot to juggle. Photo: Joe Ruckli

Simone Rennie and Matt Rennie are married co-CEOs and co-founders of rising consulting challenger Rennie Advisory – a growing Brisbane-based firm that specialises in ESG and climate consultancy. The pair, previously with EY, has grown the company to 70 staff in just three years.

They tell Queensland correspondent James Hall how they juggle work and home life here.


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John Coxon

Shape Your Future with Mindful Leadership | Build on Your Strengths | Expand Your Competencies | Be The Best You Can Be in your workplace | John Coxon at BYB-Mentor. Follow link below to BYB-Mentor on Patreon.

1 个月

The challenge for goalsetting is often that it's a one way process. The manager sets the goal and demands achievement. A truly achievable goal is one set by the team member, guided by the manager, using good coaching techniques, to set the goal sufficiently high enough to stretch the team member, while contributing in a measurable way to overall strategy

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Holly Netto (Crosthwaite)

Strategic Business Advisor | Financial and Operational Transformation Expert | Empowering Ag Retail

2 个月

Insightful perspective! While KPIs can sometimes become rigid metrics that hinder creativity, they also play a crucial role in maintaining focus, especially during market fluctuations. Striking the right balance between innovation, culture, and viability can be challenging, but achievable. I believe it’s essential to adapt KPIs to align with long-term goals rather than short-term performance. Encouraging innovation can mean introducing KPIs that reward creative problem-solving and risk-taking, rather than purely financial results. Meanwhile, fostering a positive culture involves empowering teams, giving them autonomy, and ensuring they feel valued, which often drives higher engagement and innovation. Keeping the business viable in this context means having a clear strategy that integrates flexibility into KPIs, so you can pivot quickly while staying aligned with your vision. Combining these approaches allows a company to remain agile, innovative, and culturally strong, without compromising its financial health.

Dr Katie Spearritt

Chief Executive Officer, Diversity Partners

2 个月

Really enjoyed the insights in this article. Lots of fresh ideas to drive performance that focus on doing things a little differently rather than relying on the status quo of traditional measures. Particularly valued the simple and practical suggestion to take at least two proactive ideas to clients every month.

Abby Hammerstein

Employee and Customer Success Leader

2 个月

It's true to an extent that what you can't measure, you can't improve. That said, making the right investments and innovating is essential in a challenging market. KPIs and associated commercial targets often stifle innovation. How do you get that balance right?

Sue Ellson

Independent LinkedIn Specialist - Digital Mentor, Coach, Author, Educator, Consultant, Career Development Practitioner, Founder, Gigster, Keynote Speaker, Trainer, Poet, Writer, Business Social Marketing, AI??

2 个月

The old saying that 'what gets measured gets managed' could be applied to sales but also service - and the insights gained from customers and clients can help drive a business forward a lot faster than an employee KPI - but I would still suggest that creating goals is one way to maintain momentum and look for creative solutions...

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