Leader 2030 - The 5 Traps of Key Performance Indicators (KPIs) and the Balanced Scorecard (I)

The Executive Study Group (ESG) webinar named “Leader 2030 - The 5 Traps of Key Performance Indicators (KPIs) and the Balanced Scorecard (BSC) (I)” was held by Asia Pacific Institute for Strategy Limited (APIFS) on 19^th Aug 2026. The part 1 webinar aims to discuss objectives and traps of KPIs.

In the beginning, Dr. Mark Lee mentioned three objectives of KPIs apart from financial measures and they are to capture intangible values not recognized by standard accounting rules, provide early insights into business progress before final financial results are determined, and offer actionable information to achieve strategic goals.

Then he raised a case about non-financial measure of startup and discussed its’ pitfalls.

And then Dr. Lee explained the disappointing reality that there was a lack of causal relationship between key performance indicators and financial returns.

In the part I of this webinar, 2 out of 5 traps were discussed. The first trap named “Not Linking to Strategy”. Trap One occurs when non-financial measures are not properly aligned with an organization's unique strategic objectives, leading to difficulties in selecting the right metrics, ineffective resource allocation, and the risk of blindly benchmarking against competitors.

The second trap named “Not Validating the Links”. Trap Two involves failing to empirically validate the presumed links between non-financial measures and financial outcomes, resulting in tracking too many metrics, an inability to distinguish signal from noise, and suboptimal resource allocation.

Let’s look forward to the second part of the Leader 2030 webinar.

Reference:

Asia Pacific Institute for Strategy Limited (亞太策略研究所有限公司) – www.apifs.org

ESG facebook - https://www.facebook.com/groups/esg08

Leader 2030 - Empowering the Next Generation of Leaders - https://www.apifs.org/Leader2030-en

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Previous talks summary:

https://qualityalchemist.blogspot.com/search/label/Executive%20Study%20Group