""You don't even need to make profitability a KPI," says Veejay Madhavan. "That's just basic hygiene.""
""We're given financial KPIs like revenue and margins," he continues, "but if the company isn't profitable, no one has a job. That's foundational. That should be a dashboard item, not a KPI.""
""We cannot block, copy-paste a KPI that the board has given and say, 'Okay, this is our KPI at the leadership level.' The leadership level has to look at everything. That's their job. But it doesn't mean the same KPI should trickle down unchanged.""
""If your KPIs don't make sense to the people who are supposed to deliver them, what are they good for?""
Profitability must be treated as baseline hygiene rather than a KPI. Financial KPIs like revenue and margins often arrive from boards and executives without being translated into actionable objectives for middle management. Middle managers frequently lack control over customer choices and other drivers of top-line results, making many cascading KPIs incoherent or counterproductive. Copying board-level metrics down unchanged creates confusion and inertia. Metrics should be redesigned so they are controllable, aligned with execution-level responsibilities, and equip teams to succeed. Building high-performing, multigenerational teams and aligning metrics supports sustainable performance in the AI era.
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