Insight is key in today's world. Making sense of the vast amount data is the focus of my career. I started of as a Neuropsychologist, but moved very quickly in the area of data analysis. Whether it is the BI techniques providing the insights, the applications that help find them or the areas where they are applied. As a manager, advisor or trainer, all my activities circled around making information available from data. Currently my focus lies on the management of the data (Master Data Management, Data Quality and Information Modeling). The exciting development within the area of Data Mining and Big Data is my second passion.
In 2011 my book was published "Van tofu krijg je geheugenverlies", a book on the misuse of statistics in media, politics and advertisement.
Current and past areas of interest: Key Performance Indicators, Big Data, Analytics, Master Data Management, Data Governance, Information Modeling, Data Mining, CRM, Data Quality, Data Warehousing, Management Information, Business Intelligence, Neuropsychology.
What is a Key Performance Indicator?
According to wikipedia a Key Performance Indicator is a type of performance measurement. An organization may use KPIs to evaluate its success, or to evaluate the success of a particular activity in which it is engaged.
Key Performance Indicators are everywhere. Regardless of the business you're in, most certainly KPIs are used to guide you (or your boss (and probably your boss' boss)). Try to imagine the number of KPIs currently in use. It is impossible. It's like imagining the number of powerpoint presentations being presented at this very moment. Or the number of emails being typed while you read this blog. In short: KPIs are being used a LOT! The company I work for already uses countless KPIs and my job is (partly) to build them. Some more context in a few bulletpoints
- We have been using KPIs for decades
- Everybody uses them
- KPIs are big business
- They are the lighthouses of modern time
And therefore I think we should reconsider them.
Why should we reconsider using KPIs?
First of all we should always reconsider the things we take for granted. In their brilliant book "Think Like A Freak", Steven Levitt and Stephen Dubner encourage everyone to rethink everything. So I'm merely rethinking the whole concept of KPIs. And I think for good reason. In this blog I will explain why I think KPIs are an illusion (Key Performance Illusions ;-). They've become the big yellow car lights the little mouse is staring at (just before it gets splashed).
Becoming curious? Good! I will try to address a KPI pitfall in each blog. Ranging from behavioral aspects, cognitive biases, to the more statistical issues. Next time I'll talk about "What is a Key Performance Indicator?"
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