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while inking KPIs or metrics to rewards or bonuses is bad for your business lots of companies develop strategies that set goals they define metrics and KPIs and then they think its a really good idea to then reward the people when they deliver on those metrics the challenge is that this very often drives the wrong behaviors because people can these metrics then become target and they and people will deliver on those targets so if I Im a chief executive of a a company and I get rewarded by improving my profits right so in an ideal world you would sell more increase profit margins and make more money the challenge is that I can also reduce improve my profit if I simply cut costs so in the short term I can simply take money out of the business which make the business not perform very well in the long run but if Im rewarded over the next few years on improving profitability thats an easy way to achieve that a really good example comes from an airport so I was working with this Airport
