How to Set KPIs That Drive the Right Behaviour: 6 Rules

27 Oct 2026 · 17 min · S1 E431

Episode How to Set KPIs That Drive the Right Behaviour: 6 Rules

0:00 17:21

If you put a bounty on dead cobras, you may end up with more live cobras. And if you attach a big bonus to a KPI, you’ll get the same outcome in your business.

If they’re not chosen carefully, KPIs can do more harm than good. Many KPIs are one-dimensional; they’re disconnected from the real value drivers; the targets get lowballed; and (when money’s involved), they’re susceptible to gaming.

In this episode, I look at Goodhart’s Law: When a measure becomes a target, it ceases to be a good measure.

I take you through some cautionary tales, from snake breeders in British Colonial India, to phantom bank accounts at Wells Fargo, and the Qantas saga.

And I give you six simple rules for setting KPIs that drive the results you actually want.

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Links mentioned in this episode:

No Bullsh!t Leadership episode:

No Specific Episodes

Wikipedia link:

Goodhart's Law

Amazon link:

No Bullsh!t Leadership

LBT link:

Leadership Beyond the Theory

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Our mission here at Your CEO Mentor is to improve the quality of leaders, globally.

You're still doing the work your team should own. And you can't see a way to stop.

Leadership Beyond the Theory is 9 weeks of practical reps that get you out of the weeds and hand delivery back to your team.

Taught by Martin Moore, who ran a multi-billion dollar company before he taught any of this. 3,000+ leaders. 99% would recommend. 100% money back guarantee.

Learn more: https://join.leadershipbeyondthetheory.com/

You're still doing the work your team should own. And you can't see a way to stop.

Leadership Beyond the Theory is 9 weeks of practical reps that get you out of the weeds and hand delivery back to your team.

Taught by Martin Moore, who ran a multi-billion dollar company before he taught any of this. 3,000+ leaders. 99% would recommend. 100% money back guarantee.

Lean more: https://join.leadershipbeyondthetheory.com/

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