KPIs | Project Management | Strategy | Metrics

Numbers Don’t Lie — Or Do They?

How Key Performance Indicators Can Mislead

Numbers and Key Performance Indicators (KPIs) are essential for project management and strategy development, as they help in making informed decisions.

They provide measurable evidence of progress and performance, enabling managers to

• make forecasts about the completion of the project or the execution of a strategy, showing how close they are to meeting their goals;
• show trends, by identifying patterns that could influence decisions;
• enable consistent monitoring and evaluation of benefits, ensuring that strategic objectives are being met and value is being delivered.

Yet, there are several cases where numbers and KPIs (Key Performance Indicators) can be misleading.

Chart by Fabio Turel, showing different ways to highlight trends in the same set of data

The Double-Edged Sword of KPIs

1. Oversimplification

KPIs simplify complex situations into one or a few numbers, potentially overlooking aspects that are critical for true understanding of a multifaceted reality. This reduction can hide important factors that are not easily quantified.