The KPI Paradox: How Corporate Giants Learned That Measuring Everything Means Managing Nothing

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Full article: Strategic KPI Framework: Lessons from GE, Ford & P&G

Drowning in data but starved for strategic clarity? You're not alone. In this thought-provoking exploration of the KPI Paradox, we reveal how corporate giants like General Electric, Ford, and Procter & Gamble fell into the trap of "metric madness" – and how they found their way out.

The problem is deceptively simple: the very tools designed to help us manage better often become obstacles to progress. As Goodhart's Law reminds us, "When a measure becomes a target, it ceases to be a good measure." We unpack this paradox through real-world examples where tracking hundreds of metrics led to strategic paralysis, decision delays, and lost focus.

GE's management became so bogged down with reporting that they couldn't focus on innovation. Ford meticulously tracked production and sales but completely missed the shift toward fuel-efficient vehicles before the 2008 crisis. P&G's granular brand metrics obscured critical insights about changing consumer preferences across their portfolio. The pattern is clear – in their quest to measure everything, these companies ended up managing nothing.

But there's hope. We explore how these same organisations recovered by drastically simplifying their KPI frameworks, focusing on fewer but more strategically aligned metrics. We introduce a more balanced approach to measurement that includes not just traditional outcome metrics but also adherence metrics (are you executing your strategy?) and foundational metrics (are your strategic assumptions correct?).

For B2B executives navigating complex change initiatives, this episode offers a roadmap to escape metric overload and refocus on what truly drives value. The competitive edge no longer comes from having more data – it comes from knowing exactly what to measure and when. Visit arkaro.com to learn how we can help your organisation cut through the noise and develop KPIs that actually support strategic success.

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