This week: How KPIs shape systems—and why measuring the wrong things can create the wrong results.
KPIs shape systems, influence decisions, and measuring the wrong things can lead to unintended consequences.
A Systems Perspective
Every system is optimized for the outcomes it tracks. What we measure defines what we prioritize, how we allocate resources, and ultimately, what gets done.
Hospitals measured on patient throughput can end up prioritizing speed over quality of care.
Schools focused on standardized test scores may emphasize test prep over real learning.
Workforce programs that count job placements instead of long-term career growth often produce high churn rates instead of stable employment.
KPIs are not just indicators—they are drivers of behavior. If we aren’t careful, we risk optimizing for metrics, not mission.
Designing for Impact
If KPIs define system behavior, then the challenge is designing measurement frameworks that incentivize the right actions.
1. Focus on measuring what drives impact, not just what is readily quantifiable.
If a program’s goal is economic mobility, then long-term earnings—not just job placement—should be the KPI.
If a policy aims to reduce homelessness, tracking emergency shelter use may be misleading—measuring stable housing tenure is more meaningful.
2. Shift the focus from broad metrics to meaningful, actionable insights.
A city that tracks only the number of new businesses launched might overlook whether those businesses are sustainable beyond the first year.
A workforce initiative focused on hiring speed may neglect whether workers stay and thrive.
3. Design KPIs that encourage learning and iteration.
Good measurement frameworks include feedback loops—allowing programs to adapt based on what’s working (or not).
Instead of setting rigid success benchmarks, create KPIs that track progress, bottlenecks, and unintended consequences.
Execution is Everything
The most effective workforce programs don’t just track placements—they design for long-term success. By redefining their KPIs, several initiatives have created measurable, lasting impact:
Project Quest focused on earnings growth and job retention rather than just job placements. As a result, participants saw an average wage increase of $5,240 per year, sustained even nine years post-program. [Source]
Year Up integrated employer partnerships and structured training, leading to higher earnings—30% more than peers who didn’t complete the program. [Source]
Accenture’s Cybersecurity Apprenticeship shifted its focus from program completion rates to full-time job transitions. By designing real-world industry exposure into the apprenticeship, they helped participants seamlessly move into high-demand cybersecurity careers. [Source]
These programs show that measuring what matters not only reflects success—it drives it.
