Too many business metrics. Can you over Metric?

Agree, based on quantitative evidence, on what the drivers are. Make sure you've got the "K" in "KPI" on lockdown. Run with that for a good long while until it's time for a re-evaluation due to shifting business conditions.

Great question. The answer is Yes and No –

Can you over metric - No - I look at KPI’s as ratios that are linked directly to your goals & strategies. In a perfect world you set strategy, determine how you will measure success with KPI’s, and communicate the approach to the organization. Monthly you show the KPI you previously communicated. Non-Financial individuals can understand the organizations success at achieving goals and strategies, which you previously communicated, by observing how the KPI changes over-time.

Can you over metric – Yes – I have seen financial people hide behind the metrics. They look to the ratio, instead of understanding the significance of the numerator and denominator that generate the metric…which is inexcusable. There is no replacement for understanding the numbers cold. If I fall short of goal, I need to know why. But it is just as important to understand why I exceeded the goal.

What I used to do with the 200 people who reported to me was to assemble a vertical team (across levels) to confirm the Keys in KPI's, then implement, measure every month and get commentary each quarter. The comments allowed for some celebrating (just informal, and, occasionally, with small gift certificates. End of year we re-calibrated, not adding more, but sometimes replacing KPI's. Those particularly influencing a KPI reviewed their work and thoughts as quarterly and annual performance reviews.

Maintaining the focus actually resulted in more efficiency and less surprise at performance and salary/bonus reviews.

We were guilty of analyzing everything at one point, if we could measure it we did just for the sake of measuring it. Then we realized it was overkill and overwhelming everyone, which caused most people to avoid it all together.

I think it's fine to provide all the data because different people may find certain metrics more useful than others. For leaders we need to set the expectations of which ones are in line with goals and need to be focused on. And as someone also mentioned we need to be able to understand them and how they impact the business.

When metrics replace strategy/goals. When business planning becomes "paint by metrics".

Metrics and KPI should be aligned to your long term strategic plan. The strategic plan may be 3, 5, 7, etc years out or whatever your company does. The annual plans normally align to the strategic plans. The Metrics and KPI for me are about what we are doing today and now to help achieve the annual plan that helps achieve the longer term strategic plan.

At any point in time you may be tracking 30 to maybe as much as 100 KPIs, but i would say that 10 (+/-) are the key KPI for that year to support the annual and strategic plan. The KPIs may change year over year to align with the annual plan and strategic plan.