From the course: Balanced Scorecard and Key Performance Indicators
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Company's ideal number of KPIs
From the course: Balanced Scorecard and Key Performance Indicators
Company's ideal number of KPIs
- Can an organization have too many key performance indicators, or KPIs? Well, of course it can. The word key means that the organization has gone through a selection process to identify a few key measurements out of the many possible ones that are the most important. So how many is too many? Well, in 1956, the year I was born, George Miller, a professor of psychology at Princeton University, published a paper titled, "The Magical Number Seven, Plus or Minus Two: "Some of the Limits on Our Capacity "for Processing Information". Well I like this title because it tells you just about everything you need to know about the results of Professor Miller's research. The title itself is an embodiment of the idea of summarizing a complex set of data into a few key measures, seven, plus or minus two. Professor Miller's research indicated that the human brain can store seven items of information in working memory. A couple more for…
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