MIT Sloan Management Review Article on How the Wrong KPIs Doom Digital Transformation

The most dangerous step leaders take in pursuit of digital transformation is declaring digital transformation their goal. More than any other error, confusing the means with the end is responsible for the dismal digital track record of transformation efforts.

While there are many reasons why so many companies report poor results from their digital initiatives, what stands out for us is how many aspiring transformers seek to measure the wrong things. They consistently pick poor and misleading key performance indicators, such as the number of users per license purchased or the number of processes performed using new software.

About the Author

Michael Schrage is a research fellow at the MIT Sloan School of Management’s Initiative on the Digital Economy.

Vansh Muttreja is strategy manager at Deloitte Consulting.

Anne Kwan is a principal and the transformation strategy offering leader at Deloitte Consulting.

Learn more about MIT SMR.