TITLE:
Decision Myopia: The Problem with KPIs—A Management Decision Making Perspective
AUTHORS:
Robert E. Levasseur
KEYWORDS:
Decision Myopia, Key Performance Indicator, Weaknesses of KPIs, Decision Sciences, Big Data, Management Decision Making, Guidelines for Managers Using KPIs
JOURNAL NAME:
Open Journal of Business and Management,
Vol.13 No.5,
September
12,
2025
ABSTRACT: The use of Key Performance Indicators (KPIs) is arguably a universal practice in the era of Big Data. While KPIs that measure what they appear to measure provide valuable information for management decision making, some do not. In these instances, relying on a KPI can lead to bad decisions and undesirable consequences. In this article, we answer four key questions from a management decision making perspective: What are KPIs? What are the weaknesses of KPIs? How can these weaknesses, if not understood, distort the meaning of KPIs and result in bad short, medium, and long term decisions? What can managers do to avoid the decision myopia that these weaknesses of KPIs cause?