Defining Meaningful KPIs
Throughput Show Episode 14 featuring Georgian Simion (originally aired 12/17/2025)
In this episode, I’m joined by Georgian Simion from NineTwelve to talk about a topic every manufacturing leader struggles with at some point: defining KPIs that actually matter.
Georgian kicked things off by making it clear this wasn’t a polished theory or a perfect framework. What he shared instead was a collection of hard-earned lessons—mistakes he’s made, dashboards that didn’t work, and systems that eventually did. The central question we kept coming back to was simple but uncomfortable: are the KPIs we track actually driving action, or are they just consuming time?
1. What Gets Measured Doesn’t Always Get Done
One of the first assumptions Georgian challenged was the idea that “what gets measured gets done.” He argued that measurement alone doesn’t create results—usage does. Many organizations track metrics they never look at, never act on, and never connect to a decision.
He shared examples of companies with walls full of charts where no one on the floor could explain what the data meant, who collected it, or what actions were tied to it. In those cases, KPIs weren’t helping performance—they were creating waste.
2. Too Much Data Is Just as Dangerous as Too Little
A recurring theme was overload. Georgian described organizations drowning in dashboards, collecting more and more data without clarity on what actually matters. When teams can’t distinguish signal from noise, they disengage.
The problem isn’t a lack of information—it’s a lack of focus. Meaningful KPIs must serve a higher goal. If a metric doesn’t clearly support the company’s strategy, it’s likely just window dressing.
3. KPIs Must Serve the Higher Goal
Georgian emphasized that every KPI should ladder up to strategy. If it doesn’t feed the company’s top objectives, it shouldn’t exist. He framed this as one of the most common KPI failures he sees across organizations.
From there, he introduced a simple strategic lens he uses everywhere he works: safety, quality, delivery, and cost. When KPIs align to these four pillars, profit becomes a byproduct rather than the primary target.
4. Driver KPIs Matter More Than Outcome KPIs
A major distinction in the episode was between outcome (lagging) KPIs and driver (leading) KPIs. Outcome KPIs tell leadership how the business performed last week or last month. Driver KPIs tell teams what’s happening right now.
On the shop floor, real-time driver KPIs—machine downtime, interruptions, absenteeism, schedule adherence—are what enable teams to respond before problems compound. Georgian argued that most organizations over-index on outcomes and under-invest in drivers.
5. KPIs Must Be Visible, Understood, and Tied to Action
We spent a lot of time on visibility. A KPI no one sees might as well not exist. Even accurate, well-designed metrics fail if they aren’t displayed where the work happens.
Georgian stressed that every metric should have a clear action plan attached. When performance goes off-target, teams should immediately know what happens next, who owns it, and when it will be reviewed again.
6. KPIs Are Dynamic, Not Permanent
Another common failure is freezing KPIs in time. Georgian made the case that KPIs must evolve as strategy, markets, ownership, and products change. Holding onto the same scorecard for years is a recipe for stagnation.
The goal isn’t constant churn, but intentional adjustment. When priorities change, metrics must change with them—quickly and deliberately.
7. Transparency and Accountability Drive Engagement
A powerful part of the conversation centered on transparency. Georgian was clear: KPI systems only work in transparent environments. People know when data is being manipulated or selectively shared, and trust erodes quickly when that happens.
He also addressed accountability directly. Celebrating wins is essential—but so is addressing misses. Teams disengage when green results mean nothing and red results only bring punishment. Balanced accountability is what sustains engagement.
8. Teams Don’t Work—Teamwork Systems Do
One of the most provocative moments came when Georgian challenged the word “team” itself. He argued that teamwork doesn’t happen because people are told they’re a team—it happens because systems create shared responsibility, clear roles, and aligned incentives.
KPIs, when designed correctly, become part of that system. They clarify expectations, expose problems early, and coordinate effort across the organization.
Key Takeaways / Best Practices
Measurement without action is waste
KPIs must serve the company’s higher goals
Too many metrics dilute focus and engagement
Driver KPIs enable real-time improvement
Visibility is required for accountability
KPIs must evolve as strategy evolves
Transparency builds trust and buy-in
Systems create teamwork, not slogans
Q&A from the Episode
Who should own KPI data collection?
Georgian explained that KPI ownership should be distributed. Each metric should have a champion, but data collection and accountability should involve the people closest to the work—not a single overburdened individual.
How do small companies balance manual and automated data collection?
He acknowledged that automation isn’t always feasible and emphasized starting where you are. Manual data collection can work if people understand why it matters and see action taken from it.
Who decides which KPIs belong on the shop floor?
Operational KPIs should be defined by supervisors and group leaders, aligned to higher-level goals. Strategic KPIs belong to senior leadership, but alignment across levels is essential.
How do you prevent KPIs from becoming reactive?
The answer came back to driver KPIs. Focusing on real-time indicators allows teams to respond before outcomes suffer.