MIT Sloan Management Review Article on Smart Strategies Require Smarter KPIs

Digital processes, platforms, and predictive algorithms transform the strategic role and purpose of key performance indicators. KPIs are becoming measurably smarter, more dynamic, and more adaptive. This makes them more versatile and valuable for securing strategic advantage. For data-driven disruptors like Alibaba, Amazon, Airbnb, and Uber, KPIs don’t simply monitor enterprise success; they proactively drive it. This shift creates innovative opportunities for ambitious leadership.

To reap the benefits of these next-generation metrics, a new level of top management insight and oversight is required. This article identifies a virtuous cycle of critical success factors that determine effective KPI leadership.

About the Author

Michael Schrage is a research fellow at the MIT Sloan School of Management Initiative on the Digital Economy, where he does research and advisory work on how digital media transforms agency, human capital, and innovation.

Learn more about MIT SMR.