KPI’s are proxies

It is great to measure, and a lot of my consulting time was devoted to implement ways to measure things. Soft things, like innovation and value.

All these measures are good, and at the same time I must remind myself and my clients that these measurements are proxies, pointers, guidance. Not the real thing.

– Net Present Value is not value. It is a calculation.
– Year 3 Net Sales is not commercial success. We say so.

This innovation business is tricky. Successful products have high NPV calculations and Year 3 Net Sales. Let’s be careful not to confuse cause and effect. Seeking bigger NPV’s and Year 3 Net Sales does not cause better/innovative products.