What does it mean when Kenny says "KPIs need to reflect the fact that value creation is a two-way street"?

KPIs (Key Performance Indicators) play a crucial role in reporting project metrics and the state of a project. They provide a quantifiable measure that allows a company to gauge the performance of various aspects of a project. This can include factors like project completion time, cost, scope, and quality. By tracking these KPIs, companies can have a clear understanding of the project's progress and whether it's on track to meet its objectives. They can also identify any issues or areas of improvement early on, allowing for timely intervention and course correction. This ultimately leads to more efficient and effective project management.

A company can use KPIs to drive results for stakeholders by ensuring that the KPIs reflect the value creation process, which is a two-way street. This means that the company needs to develop measures that not only reflect what the company wants from its employees but also how well the company delivers on what the employees want. This approach ensures that employees are engaged, which in turn drives results for other stakeholders such as customers. Furthermore, the company needs to consider causality when looking at performance measures. Leading indicators should predict future performance. If the organization does well with employees now, it will drive results for other stakeholders in the future.