Recently, a client and I were discussing the project management director's frustrations at the lack of support he received from his peers, "The trouble is that manufacturing's targets conflict with mine. So do engineering and supply chain. As a result, we're all in competition with each other and we can't get projects completed on time. What should we do?" Through discussion, it became apparent that the system for designing KPIs was not working at all well. Like many organizations, it was a system that had evolved over many years, with each measure of performance being developed in isolation from the others. Each metric on its own made sense, but looked at from a holistic perspective, they were ineffective and confusing. Through an analysis of the company's performance management system, the following issues emerged.
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