Many businesses respond to an issue by creating an indicator around it and attempting to measure it. In reality this “measure everything” approach doesn’t work. It can result in senior people having wade through pages and pages of indicator information trying to understand what it really means while those who are generating the indicators don’t understand their impact on the business or decisions.
It’s not uncommon for the same indicator to be reported in a few different ways or for different indicators to be presented as comparable when actually they’re not.
The result is that everyone is left wondering “What does this indicator really mean?” “How does it relate to the bigger picture?” and “How does it impact of the businesses ability to monitor compliance, manage risk or execute strategy?”