There’s a lot of evidence that the typical Key Performance Indicator (KPI) methods of trying to ensure you get performance from an outsourced or subcontracted service provider don’t work the way you think. In this Video (see below), Daniel Pink, author of “Drive : The Surprising Truth About What Motivates Us” presents research that tells you why.
I have personal experience on both sides of the fence on this issue and use KPI’s with extreme care – it’s better to put a measurement and management system in place to get the results you need, not a ‘set it and forget it’ KPI system where you simply measure success or failure after the fact and award a penalty or bonus accordingly.







