{"id":2115,"date":"2025-12-03T09:32:28","date_gmt":"2025-12-03T09:32:28","guid":{"rendered":"https:\/\/influencerswiki.org\/blog\/the-kpi-dilemma-why-performance-metrics-are-failing-middle-managers\/"},"modified":"2025-12-03T09:32:28","modified_gmt":"2025-12-03T09:32:28","slug":"the-kpi-dilemma-why-performance-metrics-are-failing-middle-managers","status":"publish","type":"post","link":"https:\/\/influencerswiki.org\/blog\/the-kpi-dilemma-why-performance-metrics-are-failing-middle-managers\/","title":{"rendered":"The KPI Dilemma: Why Performance Metrics Are Failing Middle Managers"},"content":{"rendered":"

\u201cProfitability shouldn\u2019t even be a Key Performance Indicator (KPI),\u201d asserts Veejay Madhavan, a seasoned corporate leader with decades of experience. \u201cIt\u2019s simply a basic requirement.\u201d<\/p>\n

Veejay\u2019s perspective on business performance metrics is refreshingly candid. He challenges the conventional wisdom surrounding KPIs, particularly their relevance and effectiveness in today\u2019s corporate landscape.<\/p>\n

\u201cWe\u2019re often handed financial KPIs like revenue and profit margins,\u201d he explains, \u201cbut if a company isn\u2019t profitable, no one retains their job. That\u2019s fundamental. It should be a dashboard item, not a KPI.\u201d<\/p>\n

According to Veejay, the metrics used in organizations frequently miss the mark\u2014not because numbers lack significance, but because the individuals tasked with achieving those numbers are neither aligned nor adequately equipped for success. As the founder of Oulbyz<\/a>, a consulting firm dedicated to fostering high-performing, multigenerational teams in the era of AI, Veejay has turned his focus to a critical yet often overlooked segment of most organizations: middle management.<\/p>\n

\u201cIf your KPIs don\u2019t resonate with the people responsible for achieving them, what purpose do they serve?\u201d he questions.<\/p>\n

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The Disconnect Between Strategy and Execution<\/h2>\n

At the core of Veejay Madhavan\u2019s critique lies a fundamental disconnect: while boards and executives establish lofty financial targets, these directives are seldom translated into actionable goals for those further down the hierarchy.<\/p>\n

\u201cWe can\u2019t simply copy and paste a KPI from the board and declare, \u2018This is our KPI at the leadership level,\u2019\u201d he emphasizes. \u201cLeadership must consider the broader picture. However, that doesn\u2019t mean the same KPI should be handed down unchanged.\u201d<\/p>\n

This, he argues, is where many organizations falter. Metrics that may be strategically sound at the executive level often lose their clarity as they cascade down the organizational structure. More troubling, they can become sources of confusion or inertia.<\/p>\n

For instance, consider a scenario where a manager is tasked with generating $100 million in revenue. \u201cThey don\u2019t have control over that,\u201d Veejay points out. \u201cThey can\u2019t dictate how much a customer will spend, which package they\u2019ll select, or whether they\u2019ll remain a customer at all. However, if you instruct them to identify 100,000 corporate clients who experience the pain points your company addresses, that\u2019s actionable. That\u2019s within their control.\u201d<\/p>\n

In essence, KPIs should reflect the ability to influence outcomes rather than merely embody ambitious targets.<\/p>\n

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Why Managers Feel Overwhelmed<\/h3>\n

The consequence of this misalignment? Overworked and bewildered middle managers.<\/p>\n

\u201cIn a company, everything appears urgent and important,\u201d he states. \u201cHow can there be a hundred things that are urgent? If everything is urgent, something is fundamentally wrong.\u201d<\/p>\n

Veejay paints a vivid picture of managers being pulled in multiple directions\u2014upward to executives, downward to their teams, and laterally across departments\u2014without a clear understanding of their true priorities.<\/p>\n

He likens this situation to an overwhelmed air traffic control tower. \u201cIf those managing the fleet don\u2019t know which plane to prioritize, which runway to use, and they\u2019re restricted to a single runway, what happens? You end up with a backlog of planes. Everyone is left waiting. Then, you park a large aircraft in front of a smaller one, forcing the smaller plane to wait due to potential turbulence.\u201d<\/p>\n

Veejay frequently employs aviation analogies in his discussions because they provide a tangible way to grasp systems thinking and organizational flow. The message is clear: if leaders fail to prioritize and communicate effectively, their managers cannot execute successfully.<\/p>\n

\u201cJudgment comes swiftly,\u201d he adds. \u201cYou\u2019re asked, \u2018Why haven\u2019t you taken off yet?\u2019 But no one stops to consider that a large aircraft is blocking your path.\u201d<\/p>\n

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The KPI Without Ownership<\/h3>\n

In Veejay\u2019s experience, one of the most prevalent breakdowns in organizations is the lack of ownership over KPIs. When KPIs become detached from the reality of daily operations, and when they don\u2019t accurately reflect what employees can realistically achieve, they lose their significance.<\/p>\n

\u201cWe often see team members saying, \u2018I\u2019ve completed my task. Now I\u2019m waiting for someone else to finish theirs.\u2019 That\u2019s not collaboration; that\u2019s leakage,\u201d he explains. \u201cTheir KPIs were designed this way, so they don\u2019t feel like part of a team; they merely completed a task.\u201d<\/p>\n

He refers to this phenomenon as an \u201cenergy leak\u201d\u2014a moment when capability, insight, or initiative is withheld because an individual doesn\u2019t feel accountable for the larger objective.<\/p>\n

\u201cIf you assign someone a target and say, \u2018That\u2019s your responsibility,\u2019 they won\u2019t venture beyond that boundary, even if they could contribute. Even if they possess valuable insights.\u201d<\/p>\n

For Veejay, a genuinely high-performing team operates differently. The engineer doesn\u2019t merely write code; the operations personnel don\u2019t just monitor dashboards. Everyone is aligned around a common goal and empowered to contribute across departmental boundaries.<\/p>\n

\u201cIf we state that the team\u2019s objective is to triple the customer base, then everyone shares that goal\u2014not just from their functional perspective, but as a cohesive unit. That\u2019s what true ownership looks like.\u201d<\/p>\n

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Revamping the Corporate Framework<\/h3>\n

This transition from individual KPIs to team-level ownership necessitates structural changes. However, Veejay notes that this is where many organizations resist progress.<\/p>\n

\u201cYou may want to travel from Singapore to New York, but your aircraft is still a 737. No one is going to endure an 18-hour flight in economy class without comfort. You need to upgrade the aircraft.\u201d<\/p>\n

In his analogy, the aircraft represents the organizational structure and culture. Just as a plane must be equipped for long-haul flights, organizations must adapt their frameworks to support collaborative, high-performance environments.<\/p>\n

To achieve this, Veejay suggests several strategies:<\/p>\n