Skip to content
gr0wpath
Log In

KPIs that drive the right behaviour: perverse incentives, balancing measures and targets

For team leaders, operations and service managers, and anyone who sets or reports KPIs and targets for other people's work. Prerequisite: 'Operations KPIs and dashboards', which covers defining and calculating KPIs; 'Reporting and dashboards: choosing the right metric' is useful too. You'll spot how a KPI or target could be met without improving the service, build a balanced set with outcome, process and balancing measures, test each measure against the FABRIC criteria, set targets from a baseline and think through incentives, and review results for gaming and data problems. Based on the UK government's 'Choosing the right FABRIC' framework, the IHI's guidance on measures for improvement and the GOV.UK Service Manual. Pay, bonus and contract terms are set by your organisation's HR and finance processes.

Level
Intermediate
Length
About 105 minutes
Contents
5 lessons · final exam
Status
Published · updated 10 Oct 2026
Request a demoMore Operations courses

Skills you'll practise

  • Identify how a KPI or target could be met without improving the service, and the perverse incentive it creates
  • Build a balanced KPI set with an outcome measure, process measures and a balancing measure
  • Check each KPI against the FABRIC criteria: relevant, avoids perverse incentives, attributable, well-defined, timely, reliable, comparable and verifiable
  • Set a target from a baseline with a clear line of sight to the purpose, and decide how far to link it to incentives
  • Review KPI results for signs of gaming and data problems, and revise measures that drive the wrong behaviour

Course outline

  1. 1.Identify how a KPI or target could be met without improving the serviceLesson · 20 min
  2. 2.Build a balanced KPI set with outcome, process and balancing measuresLesson · 20 min
  3. 3.Check each KPI against the FABRIC criteriaLesson · 20 min
  4. 4.Set a target from a baseline with a line of sight, and decide how far to link it to incentivesLesson · 20 min
  5. 5.Review KPI results for gaming and data problems, and revise measuresLesson · 12 min
  6. 6.KPIs that drive the right behaviour: perverse incentives, balancing measures and targets: knowledge checkKnowledge check · 14 questions
  7. 7.KPIs that drive the right behaviour: perverse incentives, balancing measures and targets: practical exerciseKnowledge check · 1 question
  8. 8.Final exam10 questions · passing it completes the course, so people who already know the material can test out

Sources it draws on

The lessons and questions are written from these references, so learners can go back to the original.

See it with your own jobs and topics

Tell us about your team and we'll walk you through setup, from choosing jobs to your first skills check.

Request a demoLog in