Golden rule 2: Less is more!
A common problem in performance management is the number of KPI’s organizations are steering on. People want to be in control and therefore define as much KPI’s as possible, because “they might be interesting in the future.” As a result, people are drowning in information (also called information overload), reports are getting blurred, users are losing their overview and control and will fall back on their intuition as a steering mechanism.
To make sure this will not happen, organizations have to take care of the number of KPI’s they are steering on. There has to be a balance between the need for information to steer the organization and information overload. In practice, this means each manager has five to eight KPI’s to steer on.
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