Management by KPI (MBKPI)
(Performance Measurement / Business Intelligence)
A results-oriented management philosophy where the achievement of pre-defined key performance indicators (KPIs) is prioritized over actual business success. MBKPI practitioners believe that optimizing individual metrics automatically leads to company-wide improvement, even when those metrics do not reflect reality.
Examples from practice
A company reducing customer service response times at the cost of solving fewer actual problems; a sales team inflating short-term numbers by offering unsustainable discounts.
Advantages
Provides clear performance benchmarks; enables comparative analysis.
Disadvantages
Encourages metric gaming; discourages innovation; may drive counterproductive behavior.