This seems like a clear recipe for premature optimization, or "the root of all evil" as Knuth likes to say.
Ending up with an exploding car is also an end result of premature optimization. It means you're focusing on revenue to an extent that is counter-productive.
That means that revenue isn't the overall goal, either. The overall goal is "an ever-flourishing company".
KPI is only one way to try and marshall the resources of a company to move in the right direction, but it seems easy to use wrongly, leading to balkanization of departments, etc. The other way is to use a system like Theory Of Constraints, which encourages a systematic view of the company's overall goals, that is transparent down through the implementation levels, and do regular constraint analysis to identify the (ever-changing) root constraints that block progress towards the overall goals.
Comments
This seems like a clear recipe for premature optimization, or "the root of all evil" as Knuth likes to say.
Ending up with an exploding car is also an end result of premature optimization. It means you're focusing on revenue to an extent that is counter-productive.
That means that revenue isn't the overall goal, either. The overall goal is "an ever-flourishing company".
KPI is only one way to try and marshall the resources of a company to move in the right direction, but it seems easy to use wrongly, leading to balkanization of departments, etc. The other way is to use a system like Theory Of Constraints, which encourages a systematic view of the company's overall goals, that is transparent down through the implementation levels, and do regular constraint analysis to identify the (ever-changing) root constraints that block progress towards the overall goals.