The Corporate Performance Problem
Report #2 - What Happens when "More" is the only measure of progress?
If business leaders Measure What Matters, then most businesses believe they matter more than their customers.
Introduction
If business leaders Measure What Matters, to borrow a phrase from John Doerr, then most businesses believe they matter more than their customers. The overwhelming evidence can be easily found in their performance dashboards. Immediately, you’ll likely find KPIs that are all about Value-to-Business. Though many business leaders claim to be "customer-centric," only a few truly show it through their actions, such as measuring Value-to-Customer. It's easy to make customer-centric statements, but true commitment is evident only when companies take meaningful steps to quantify and prioritize customer value. Rarely will you find a corporate dashboard that tracks how effectively a company fulfills its mission to serve customers, employees, and society. Instead, the "Mission" often lives on the company’s website—a statement crafted to project a sense of purpose beyond profit and power, rather than a measurable commitment to it. What you’ll find on C-Suite dashboards (especially in High-Tech) is high-level, aggregated KPIs focused on “Financials,” “Products,” “Utilization,” and “Advocacy.” This picture varies by industry, of course, but what remains consistent is the lack of metrics focused on customers. True commitment to creating value for customers shows through (measurable) actions, not words.
The Problem: This report reveals a pervasive "collective dysfunction" within many organizations, a hidden force that undermines corporate performance at its core. Just as individuals often fail to recognize their own blind spots, companies remain largely unaware of this deeply rooted dysfunction that quietly hinders their success.
The Solution: Be (Measurably) Mission and Purpose-driven. And focus more on human experiences.
Experiential Metrics provide a direct and nuanced view of customer interactions by measuring real-time emotions, perceptions, and behaviors, giving business leaders foretelling insights into the human experiences driving their success. Unlike traditional KPIs, which focus on lagging metrics like revenue and NPS, Experiential Metrics capture the underlying "why" behind customer actions, enabling companies to proactively shape positive experiences that drive loyalty, retention, and growth. This real-time feedback allows executives to make precise, data-driven decisions that improve customer satisfaction and financial performance. Despite their potential, many leaders still rely on high-level, retrospective indicators due to their familiarity, historical value, and perceived stability. What succeeded in the past will not suffice for the rapidly approaching future, marked by advances like AI architecture and maturity models, synthetic data, zero-party data, journey analytics and orchestration, affective computing, and human biofield electromagnetic signal processing—measuring how customers feel as they enter and exit journeys.
By identifying and addressing the actual human perceptions that drive purchase decisions, loyalty, and advocacy, businesses can proactively shape (i.e., “orchestrate”) positive customer experience journeys that measurably resonate on an emotional level, leading to greater customer retention, increased lifetime value, sustainable growth, and more revenue. Furthermore, as the market grows more complex and competitors adopt customer-centric, data-rich strategies, the shift to Experiential Metrics is becoming essential for sustained growth and competitive advantage.
Yet Executives and Senior Leadership cling on to the status quo of lagging metrics.
The motivation to change the way executives measure the performance of their business will likely come from the need for more actionable, real-time insights that reveal the root causes of negative business impact, which are discoverable in emerging data sources such as zero-party data, which goes beyond customer behaviors, personal preferences, and market/journey context to reveal customer’s desires, intentions, and immediate actions—true customer-centric economic leading indicators.
When the only measure of progress is always “more,” then what’s the higher purpose?
When the only measure of progress is always “more,” then what’s the higher purpose? Much of corporate dysfunction stems from an unchecked drive for growth and external validation, a mindset that parallels consumer culture's obsession with material accumulation. When growth is pursued solely for self-enhancement, it fosters environments focused on relentless ambition rather than sustainable, meaningful impact. In organizations, this dysfunction shows up as self-interest, internal conflict, and short-term thinking—overlooking the broader impact on the collective human experience. Poor employee experience leads to poor customer experience, ultimately undermining performance.
Positive change within organizations begins with individuals fostering awareness and detaching from ego-driven patterns that link self-worth to status or material accumulation. By challenging status-based competition and superficial symbols of success, individuals can cultivate a culture of purposeful, responsible growth that respects organizational well-being. This approach encourages collaboration, shared purpose, and personal freedom from the pursuit of egoic validation. Recognizing theses deeper human tendencies—such as fear, greed, and ego—that fuel self-centered behaviors, conflict, and misunderstandings, gives individuals the power to drive true transformation in their respective organizations. Addressing these inner dysfunctions opens the door to a healthier corporate culture and a more meaningful, connected approach to life and work.
Key Takeaways
Executive Time Constraints: Senior executives are pressured to make quick, high-impact decisions, often prioritizing immediate results over long-term strategies. This focus on key performance indicators (KPIs) can create disconnects from day-to-day (human experience) details, hindering a thorough understanding of customer and employee experiences.
Reliance on Lagging Metrics: Executives frequently depend on lagging data or "rearview mirror" metrics, which provide insights only after the fact, limiting their ability to proactively address emerging trends or shifts in customer behavior and competitive landscapes in real-time.
Status Quo Mindset: Traditional KPIs, often focused on Value-to-Business, dominate C-Suite priorities. Lacking customer empathy, by failing to focus on it, not only stifles innovation but also limits a company’s understanding of the market and emerging growth opportunities, directly impacting short-term growth and long-term financial performance.
Need for Experiential Metrics: Forward-thinking executives should adopt experiential metrics that measure nuanced aspects of the customer journey, such as goal completion, outcome satisfaction, and emotional impact, to make timely, effective decisions based on deeper customer (perception and behavioral) insights.
Purpose-Driven Culture for Sustainable Growth: Shifting from an egoic-insatiability corporate culture to one focused on mission and purpose-driven fosters a healthier organization where employees are aligned with meaningful goals, driving both customer and societal value.
Empowering Executives with Continuous Learning: Investing in executive education on leading experiential data and real-time decision-making can help leaders overcome outdated performance management practices and enhance alignment around mission and purpose across the organization.
Factors Driving the Performance Problem
The Performance Management Problem is driven by a complex mix of structural and behavioral factors that challenge effective decision-making at the executive level. Key issues include time constraints that pressure leaders to prioritize immediate results over long-term strategies and a reliance on lagging metrics that delay essential insights, leading to reactive rather than proactive decision-making. Furthermore, the dominance of traditional KPIs in the C-Suite creates a status quo mindset, where metrics often cater to individual roles without capturing the full organizational picture. This is compounded by undercurrents within executive teams, such as insufficient accountability, unclear communication, and limited self-awareness, all of which hamper cross-departmental alignment and mutual accountability. Investment in executive enablement and education, alongside setting clear and measurable expectations, is essential for fostering a culture of ownership and enhancing the leadership capabilities necessary for managing performance holistically and sustainably. Together, these factors underscore the need for a cohesive and agile approach to performance management that can adapt to both immediate operational needs and evolving marketplace (digital) transformations.
Time Constraints
Why Time Constraints Impact Effective Performance Management.
C-suite executives face intense pressures that impact their ability to manage performance effectively. Their schedules are packed with high-stakes meetings, strategic decisions, and stakeholder engagements, leaving little time to delve into the granular details that drive day-to-day operations. Likewise, executives rely on key performance indicators (KPIs) aligned with overarching business goals, trusting their teams to provide distilled, actionable insights and leaning on modern data visualization tools to interpret complex trends quickly. While this approach helps executives stay agile and prioritize impactful, long-term choices, it can also disconnect them from nuanced human (I.e., employee and customer) experiences.
Executives are, in essence, “drowning in data,” often tuning out when inundated with too many details or metrics that don’t align with their trusted indicators. Many leaders tend to favor metrics that reinforce the status quo, and when new insights clash with their expectations, they may resist, prioritizing their gut feel and prior experiences over new insights. The demand to constantly deliver results against ambitious goals only heightens this dynamic, as leaders must manage unrelenting expectations, navigate bureaucracy, and address market volatility—all of which add significant stress and emotional distortions.
Ultimately, the immense pressure of executive responsibilities and the need to focus on bold, strategic moves mean performance management often suffers. With limited bandwidth for day-to-day, executive leaders risk overlooking evolving needs and perspectives that could enrich decision-making, making time constraints a critical factor in the performance management problem.
Rearview Mirror Decision-Making
How Lagging Metrics Impact Performance Management.
When executives rely too heavily on lagging metrics, there’s a risk that critical decisions are made with outdated or incomplete insights. Senior leaders often default to familiar indicators because these trusted metrics have historically provided a framework for assessing performance, allowing for swift, confident decision-making in high-stakes environments. These metrics align with past successes and current objectives, giving leaders a sense of grounding and reducing the complexity of data interpretation. However, while sticking to established KPIs may seem efficient, it can inadvertently narrow leaders’ focus, preventing them from recognizing emerging growth opportunities and market shifts.
In today’s dynamic landscape, simply relying on past performance data can blind executives to changing consumer behavior, competitor advances, or technological breakthroughs. Without timely, detailed data, companies risk missing critical opportunities to reallocate resources toward high-potential areas, giving agile competitors an advantage. Embracing more granular and forward-looking metrics allows executives to stay one-step-ahead of competitors, creating competitive advantage by identifying profitable growth areas fast, and adapting strategies that capture new earned revenue and sustain net revenue retention.
Moreover, as markets increasingly value authentic, human-centered engagement, executives must look beyond aggregate customer data to understand customer behaviors on a deeper level. Investing time in these insights enables leaders to craft products and services that genuinely meet evolving customer needs, fostering loyalty, driving organic growth, and creating clearer paths to future success.
Relying on lagging performance indicators is like steering a ship by only looking at its wake.
Relying on lagging performance indicators like revenue, operating margins, product utilization, quality, product-market fit, net promoter score, customer satisfaction, customer effort score, and human capital effectiveness can be likened to steering a ship by only looking at its wake. While these metrics offer valuable insights into what has already happened, they are inherently backward-looking, revealing the outcomes of decisions made weeks, months, or even years ago.
This approach — "rearview mirror decision-making" — exposes companies to significant risk because it overlooks the dynamic nature of markets, customer behaviors, and technological advancements.
The C-suite must recognize that by the time these indicators reveal a problem or opportunity, the underlying factors have already shifted. Decisions made based on historical data can, and often do, lead to missed opportunities, delayed reactions to emerging trends, and a lack of agility in addressing evolving threats or market conditions. For instance, an organization focusing on net revenue retention might not realize that customer dissatisfaction is festering until churn is already occurring, or a reliance on product-market fit data might lead to a delayed pivot when consumer preferences rapidly shift.
To mitigate the limitations of lagging metrics, executives must adopt a balanced approach that includes real-time, forward-looking insights alongside traditional performance indicators. While familiar metrics provide a strong foundation for decision-making, they should be complemented by granular data that reveals emerging trends in customer behavior, market shifts, and competitor actions. By broadening their data scope, leaders can better recognize growth opportunities and strategically reallocate resources to high-potential areas before competitors do.
This proactive approach is essential in today’s fast-paced market, where agile, informed companies quickly gain an edge. Moving beyond aggregate summaries, executives need to invest in understanding detailed customer perceptions and behaviors, which allows them to tailor products and services more effectively to meet evolving market demands. This emphasis on authentic, human-centered insights not only strengthens customer loyalty but also drives sustainable growth and positions the company for future success. Embracing this expanded view of metrics enables leaders to make data-informed decisions that align with both present (Horizon-one) objectives and future (Horizon 2 & 3) opportunities.
Performance Indicators Exercise
Reimagining Performance Indicators for Holistic and Actionable Insights.
Many current corporate performance indicators focus predominantly on metrics that measure Value-to-Business, while mostly excluding performance indicators that measure Value-to-Customers. This decades-old “status quo” approach to performance management limits executives' ability to make fully informed, customer-centered decisions. Most so called “customer” metrics that businesses use today, such as NPS, CSAT, CES, and eNPS, rely on lagging survey data and distorted proxies that capture only a fraction of the actual customer or employee experience—they are not “true experience” metrics. These misleading experience metrics do not tap into the real-time customer interactions, emotions, perceptions, behaviors, and economic outcomes at the touchpoint, journey, and relationship levels of experience—the essential elements of customer experience that drive all economic behavior.
Relying on proxy metrics is like guessing your weight based on your diet rather than stepping on a scale—an indirect approach that paints an imprecise picture.
Relying on proxy metrics is like guessing your weight based on your diet rather than stepping on a scale—an indirect approach that paints an imprecise picture. Clearly, “guessing” is no way to reasonably do business. As Jared Spool put it, “When we're guessing what users need, when we're guessing how our product fits into a user's life, it's highly unlikely we will guess correctly.” Yet, that’s what business leaders are doing every day. Forward-thinking executives need to expand beyond traditional proxy performance indicators to include journey-level Experiential Metrics, which provide a powerful lens into how customers perceive and interact with products, services, and brands throughout their journey.
Markets are conversations, and these conversations are authentically human. Experiential Metrics capture essential dimensions of fundamental human needs in the context of commerce, like goal completion, job success, desired customer outcomes, financial outcomes, satisfaction, and the emotional impact an experience has with a customer. This gives executive leaders a nuanced view of product relevance, customer satisfaction, and perceived Value-to-Customer. Something that is “nuanced” has subtle details that make it complex and interesting. For example, you might describe a customer conversation as nuanced if it makes you think in ways you otherwise would not think by only monitoring aggregated high-level metrics on a corporate performance dashboard. By focusing on these holistic (human) Experiential Metrics, leaders gain more actionable insights that uncover the root causes of performance issues, empowering them to make far timelier, highly impactful decisions.
Exercise-1: Observe
Immerse yourself in the world of performance indicators and then reflect on how you feel about C-Suite performance expectations.
Overall C-Suite Business Performance Indicators:
Revenue - Revenue is measured by the total income generated from selling goods or services during a specific period, calculated as the number of units sold multiplied by their average price. It represents the "top line" on the income statement and does not account for any expenses. Revenue is typically reported quarterly or annually, and the calculation may vary by industry. For instance, subscription services track recurring fees, media companies measure ad-based earnings, and service businesses bill hourly or per project. Unlike net income, which deducts expenses, revenue reflects gross sales. U.S. companies adhere to GAAP for consistent reporting.
Cost - Under GAAP, cost is typically measured using the "historical cost" principle, meaning assets are recorded at their original purchase price. For inventory, companies can use methods like First In First Out (FIFO), Last In First Out (LIFO), or Weighted Average, depending on the asset type, but must apply the chosen method consistently. Companies must also disclose the inventory costing method in their financial statements. For unique assets, the "specific identification" method may be used to track individual item costs.
Profit - A company's profit, or "net income," is calculated by subtracting all expenses from total revenue, reflecting actual earnings for a specific period. GAAP uses accrual accounting, meaning revenue and expenses are recorded when earned or incurred, not when cash changes hands. Profits are reported on the income statement, showing revenue, less operating expenses, interest, taxes, and other costs. It includes gross profit (revenue minus cost of goods sold), operating income (gross profit minus operating expenses), and net income. Companies must consistently apply accounting methods for comparability across periods.
Operating Margin - Operating Margin is calculated by dividing a company's Operating Income by its Net Sales, showing the percentage of revenue left after all operating expenses are deducted. It measures how efficiently a company manages its core business activities. The formula is Operating Margin = (Operating Income / Net Sales) x 100%. Operating Income includes profits from primary operations after deducting expenses like COGS, SG&A, depreciation, and amortization, while Net Sales reflects total revenue minus returns and allowances. Operating Margin excludes non-operating items and is useful for comparing efficiency within an industry.
Asset Utilization - Asset Utilization is calculated by dividing a company's total revenue by its total assets, showing how much revenue is generated per dollar of assets. For a company with $1 billion in revenue, this is done by dividing that revenue by the total asset value listed on the balance sheet. A higher asset utilization ratio indicates more efficient asset management. However, industry norms should be considered when comparing ratios, as asset-heavy industries typically have lower asset utilization. Formula: Asset Utilization = Total Revenue / Total Assets.
CX (Customer Experience) - Companies with $1 billion+ in revenue typically measure customer experience (CX) through a comprehensive set of metrics, often including customer satisfaction scores (CSAT), Net Promoter Score (NPS), customer retention rate, customer effort score (CES), along with detailed analysis of customer feedback, behavior data, and specific touchpoint interactions and analytics across the customer journey. NPS dominates the C-Suite as a key metric, serving as a proxy for company advocacy and an indicator of loyalty-to-company.
EX (Employee Experience) – Large companies typically measure employee experience through a combination of quantitative metrics like employee satisfaction surveys, Net Promoter Scores (eNPS), turnover rates, absenteeism rates, engagement scores, and qualitative feedback mechanisms, often focusing on key aspects of the employee journey like onboarding, development opportunities, work-life balance, recognition, and leadership quality, while also analyzing the impact on business metrics like productivity, customer satisfaction, and revenue generation to understand the ROI of employee experience initiatives.
NRR (Net Revenue Retention) – Net Revenue Retention (NRR) measures the percentage of recurring revenue retained from existing customers over a specific period, including upsells, expansions, and renewals, while accounting for downgrades and churn. It looks at both earned revenue and bought revenue as a percentage of earned growth. Fred Reichheld, the creator of Net Promoter Score (NPS), is now advocating for NRR because it provides a more direct, financially grounded view of customer loyalty and growth. While NPS gauges a proxy for customer sentiment, NRR correlates customer-based accounting with earned growth rate.
Corporate Development - Corporate Development is typically measured by evaluating the financial returns of initiatives like mergers and acquisitions (M&A), primarily through metrics like Return on Investment (ROI), Net Present Value (NPV), Internal Rate of Return (IRR), revenue growth, and synergy capture; essentially assessing how well the corporate development team has generated value through strategic deals, considering factors like market expansion, operational efficiency, and shareholder dilution/accretion after an acquisition.
Compliance - In large $1 billion+ companies, compliance is often measured by calculating the number of full-time equivalent (FTE) employees dedicated to compliance functions per $1 billion in revenue, alongside metrics like the number of compliance incidents, the cost of compliance activities, and the effectiveness of internal controls, all compared against industry benchmarks and regulatory requirements; essentially assessing how efficiently the company manages compliance relative to its size and revenue generation.
Board of Directors – The Board of Directors is responsible for the company’s performance and activities, including financial performance, budgets, and capital expenditures. Here are some performance metrics that are unique to boards of directors:
Governance: Assess the board's commitment to best practices and accountability. Key metrics include board composition, diversity, independence, and proactive engagement with stakeholders.
Culture: This metric evaluates the interactions, behaviors, and relationships within the board. Effective governance fosters a culture of trust, open communication, and a safe environment for collaboration.
Succession Planning: This binary metric indicates whether a formal succession plan is in place for the CEO and senior management roles.
Fit and Proper Process: This metric assesses senior management based on established "fit and proper" criteria, ensuring leadership meets necessary standards for competence and integrity.
EBITA – Investors use EBITA (earnings before interest, taxes, and amortization) to measure a company’s profitability and efficiency. EBITA is a financial metric that can help investors understand how much cash a company has available to invest, pay dividends, or settle debts. Here are some common ways EBITA can be used by investors:
Compare companies: Used to compare companies in the same industry to determine which is more profitable and efficient.
Gauge a company's value: Used to gauge a company's value and earning power.
Determine investment: Used to determine if a company is a good investment.
Determine whether M&A is reasonable: EBITA can help businesses determine if another business is a good candidate for a merger or acquisition.
Make operational changes: EBITA can help you determine if you need to make operational changes to increase profits. For example, you might consider upgrading equipment, increasing prices, or investing in training and upskilling staff.
Decide how to reinvest in your company: EBITA can help you determine how much money to reinvest in your business or pay dividends.
Note: EBITA is a non-GAAP financial measure. Therefore, it can be a misleading metric for decision making because it doesn’t account for several important factors.
Exercise-2: Reflect
Reflect on each of the following C-Suite roles, try to empathize with each role and find common ground among the metrics and measurements.
Top Performance Indicators by C-Suite Role
CEO (Chief Executive Officer):
Revenue Growth: This directly measures the company's top-line sales and indicates how effectively the CEO is expanding the business and capturing market share.
Net Profit Margin: This metric shows the percentage of revenue that translates into pure profit after all expenses are deducted, highlighting the CEO's efficiency in managing costs and maximizing profitability.
Customer Satisfaction: This measures customer loyalty and overall experience through a simple survey, providing an aggregated high-level glimpse into the “CEO's ability” to retain customers and build a positive brand reputation.
Note: CEOs rarely “retain customers” in their role, rather they tend to tailor KPIs to their industry, align them with strategic goals, and balance financial and non-financial metrics like customer satisfaction and employee retention. There is no “one-size-fits-all” set of KPIs for C-Suite roles, including the CEO. However, the CEO does set priorities for KPIs. It’s up to others to deliver results.
CFO (Chief Financial Officer):
Operating Cash Flow: This directly indicates the company's ability to generate cash from its core business operations, considered one of the most important indicators of financial health by many CFOs.
Gross Profit Margin: This metric shows how much profit a company makes from selling its goods or services after subtracting the cost of production, highlighting the profitability of each sale.
Debt-to-Equity Ratio: This measures the proportion of a company's funding that comes from debt compared to equity, indicating how much financial leverage a company is using and its potential risk.
COO (Chief Operating Officer):
Operating Margin: This metric shows how much profit a company generates from its core operations, directly reflecting the COO's effectiveness in controlling costs while maximizing revenue.
Operational Efficiency: Measured through metrics like cycle time, production throughput, or labor utilization, this indicates how effectively the company is using its resources to produce goods or services.
Customer Satisfaction: Measured through surveys, feedback, or Net Promoter Score (NPS), and demonstrates the COO's ability to ensure smooth operations that meet customer needs.
CRO (Chief Revenue Officer):
Revenue Growth: The most fundamental metric, reflecting the overall increase in sales over a specific period and directly indicating the CRO's effectiveness in driving revenue generation.
CLTV (Customer Lifetime Value): This metric looks at the total revenue a customer generates throughout their relationship with the company, highlighting the value of acquiring high-quality customers who make repeat purchases.
CAC (Customer Acquisition Cost): Measures the cost associated with acquiring a new customer, helping the CRO understand the efficiency of their sales and marketing efforts in bringing in new clients.
CMO (Chief Marketing Officer):
CAC (Customer Acquisition Cost): The total cost of acquiring a new customer, including all marketing and sales expenses, allowing the CMO to assess the efficiency of their customer acquisition strategies.
CLTV (Customer Lifetime Value): Measures the total revenue a customer is expected to generate throughout their relationship with the company, highlighting the importance of customer retention and loyalty initiatives.
Conversion Rate: Tracks the percentage of website visitors or leads that take a desired action, like making a purchase or signing up for a newsletter, providing insight into the effectiveness of marketing campaigns in driving desired outcomes for the business.
Note: Additional important CMO performance indicators include Net Promoter Score (NPS) for customer satisfaction and loyalty, brand awareness, marketing ROI, and lead generation from marketing efforts.
CHRO (Chief Human Resources Officer):
Employee Satisfaction: Measures of how content employees are with their jobs and the company, which is linked to higher productivity and loyalty.
Employee Turnover Rate: Shows the percentage of employees leaving the company within a specific timeframe, signifying potential issues with retention and employee satisfaction.
Employee Engagement: Represents the level of enthusiasm and commitment employees have towards their work and the organization, often measured through surveys and feedback mechanisms.
Note: Key HR KPIs also include cost per hire, time to hire, absenteeism rate, training effectiveness, and employee Net Promoter Score (eNPS – employee’s willingness to recommend the company to others).
CIO (Chief Information Officer):
IT Return of Investment (ROI): measures the financial return generated by IT investments, demonstrating the business value derived from technology initiatives.
System Uptime Rate: This indicates the percentage of time IT systems are operational and available, reflecting system reliability and minimizing potential disruptions to business operations.
Average Time to Resolution (ATR): This metric tracks the average time taken to resolve IT issues, highlighting the efficiency of the IT support team in addressing problems.
Note: Essential CIO KPIs include IT cost-to-revenue ratio, IT budget allocation, application development lead time, security incident rate, improved productivity, increased revenue, IT investment alignment with business goals, and customer satisfaction with IT services.
Exercise-3: Make It Happen.
You can make a difference. It doesn’t have to be this way.
As evidenced herein above, you can observe that many ‘status quo’ corporate performance indicators focus predominantly on metrics that measure Value-to-Business, while mostly excluding experiential performance indicators that measure Value-to-Customers.
If reviewing the above corporate performance metrics and role-based applications left you feeling detached or uninspired, you're not alone. It’s time to innovate, time to change the status quo. Most people know about the “survey problem” with CX. However, many don’t know about the problems addressed in this report. Use this report to help fuel and frame your next right steps toward change.
Make A Difference: Let’s explore ways to change how your C-Suite views its business. Let’s think about the impact it will have on corporate performance.
Mission and Purpose
“To satisfy the customer is the mission and purpose of every business.”
If Peter Drucker is right, and the mission and purpose of every business is to satisfy the customer, then exactly how do any of the above corporate performance indicators measure that outcome?
The concept of "collective dysfunction" in organizations reflects a widespread focus on self-interest, status, and short-term greed and gains rather than genuine service to customers or commitment to mission. This disconnect highlights a deeper issue: many businesses lack a true commitment to their mission, treating it as a superficial statement rather than embedding it into their operations and measuring its impact on customers and society.
The root cause of this dysfunction lies in an ego-driven mindset within corporate culture, which equates success with external markers like status or material (e.g., financial) accumulation. This parallels broader societal patterns, where the pursuit of growth often serves self-enhancement instead of sustainable, meaningful contributions to humankind. When individuals within organizations detach from these egoic tendencies, they can foster positive change by promoting reflection, value alignment, and purposeful growth. By prioritizing collaboration, respect, and shared purpose over competition and self-interest, companies create greater value for customers and society, which in turn drives sustainable business growth and strengthens organizational culture. This inclusive approach not only improves individual well-being but also enhances customer loyalty and brand reputation, delivering measurable returns to the business as a direct result of meeting broader customer and societal needs.
Be an Agent for Positive Change. Be Mission and Purpose-driven.
Focus more on human experiences, by focusing more on Purpose-driven metrics.
By focusing on enhancing your customer’s happiness and well-being, it will return happiness and well-being to you. It will also strengthen the vast web of connected relationships across all touchpoints and interactions people have with your business. Addressing collective dysfunction is critical to an organization's mission and purpose because it allows the company to serve its true purpose—to create lasting value for customers, employees, and society. When employees move beyond self-centered motivation, they can focus on creating genuine impact in people's lives rather than chasing ego-driven metrics that fuel an endless pursuit of "more." This shift fosters a healthier organizational culture where the mission aligns with daily practices and inner purpose, creating an environment where sustainable, mission-driven success becomes possible.
These foundational principles of Positive Change—prioritizing inner purpose, recognizing and addressing collective dysfunction, and striving for meaningful, sustainable impact—guide us in treating others with respect, understanding our own life's purpose, and measuring authentic progress toward a higher purpose. By aligning personal and organizational actions with a deeper mission, we foster a culture of empathy, collaboration, and shared purpose. This alignment not only drives respectful, purpose-driven interactions but also establishes standards for meaningful growth and success, ensuring that our measures of progress reflect true value to individuals, communities, and society as a whole. At a high level, such measures can be found in ESG (Environmental, Social, and Corporate Governance) reporting. However, the real work to manage these experiences and outcomes is done at the journey level.
Mission and Purpose are (human) experiences that are measured at the journey level.
Mission and Purpose are (human) experiences that are measured at the journey level. When individuals align their "inner purpose" with the company’s "outer purpose" or mission, they bring a sense of personal meaning and commitment to their work. This alignment fosters greater motivation, resilience, and collaboration, enabling employees to contribute to the mission with genuine passion and purpose. Such harmony between personal values and organizational goals is key to driving both individual fulfillment and collective success. Companies that genuinely live their brand values with a strong sense of shared purpose are undoubtedly winning in their markets. The leading indicators of their success are clearly reflected in the measurable experiences along their customer journeys.
Now contrast this purpose-driven approach to a recent Gartner report that states, C-Suite influence (i.e., people who have gained executive influence) is primarily driven by the "delivery of business results"—outcomes that enhance profitability, growth, and competitiveness. The report goes on to state, leaders who demonstrate “success” through predictive, data-driven insights gain credibility, empowering the C-Suite to make proactive, informed decisions that foster a competitive edge. However, according to this report, gaining consensus within the C-Suite can be challenging due to differing priorities, each requiring one or more of the following forms of conflict resolution: (1) aligning diverse perspectives around shared goals, (2) using data as an objective decision tool, (3) minimizing risk through predictive insights, (4) promoting accountability and transparency, and (5) ensuring alignment with long-term strategic objectives. The report concludes, consensus and data help unify leadership decisions, advancing both immediate and future organizational success.
And yet, where’s the customer in all this? You’d think that a so called “customer-centric” C-Suite would be equally or more influenced by the delivery of customer value. You’d also think that would be a measure of “success.” However, that appears to not be the case. Instead, what this report is addressing is mostly about conflict resolution in the C-Suite. The report itself is really not the point, it’s merely another example of a status quo, more of the same corporate inertia, the same desire to stick with what we know, despite seeing this same problem surface in similar analysts’ reports. It’s pervasive.
Notably, several elements essential for C-suite conflict resolution—such as "shared goals," "alignment," and "consensus"—also align with principles of Positive Change. What’s often missing, however, is the unifying purpose: the "why" behind solving a customer’s problem together and the "how" we can help customers achieve their goals better than before. It’s also about understanding how the customer “measures” their own outcomes—from their POV. This is the difference between the “Status Quo” approach to performance management and Purpose-driven. Indeed, business leaders do Measure What Matters to them. Again, just look at their performance dashboard. Improving financial performance is a fundamental goal for any for-profit business; however, when driven by a purpose beyond mere financial accumulation, companies unlock a deeper, more sustainable form of value. Shifting to a purpose-driven culture that prioritizes serving a higher mission transforms organizational dysfunction into a positive, cohesive force. This alignment fosters employee engagement, customer trust, and brand loyalty, which directly translates to stronger financial returns. By moving beyond ego-driven pursuits of "more," leadership reduces conflict, builds a healthier organizational environment, and ultimately achieves more sustainable and impactful financial success.
Executive Enablement
Investing in executive education is essential for leaders dedicated to transcending traditional corporate performance management practices, fostering a mindset that goes beyond the status quo, and rooting out dysfunction and driving positive, lasting change within their organizations. High-performing executives make time for continuous learning, which allows them to identify outdated practices and reimagine approaches that not only foster a culture of agility and resilience, but also align with mission and purpose.
By focusing on personalized development, leaders not only build on their unique strengths but also gain the skills needed to address team challenges and uplift the organizational culture. Structured courses in areas like experiential data analytics and strategic decision-making equip leaders to make proactive, data-driven decisions, promote transparency and accountability. Collaborative learning experiences also strengthen the executive team’s alignment around the company’s mission and purpose, fostering a united front in championing strategic shifts and innovations. Ultimately, these educational investments empower C-Suite leaders to dismantle dysfunction, encourage Positive growth, and position their organizations for sustained success.
Accountability & Ownership
Resolving C-Suite conflict requires a commitment to positive change, driven by a focus on inner purpose and a dedication to meaningful, sustainable impact. Many accountability or ownership challenges stem from issues like unclear communication, departmental silos, and limited self-awareness, which can foster dysfunction and obstruct progress. Leaders can overcome these obstacles by prioritizing transparent, purpose-driven communication that aligns goals and expectations across the organization.
Additionally, by implementing systems for collective accountability and regularly addressing interdepartmental gaps, executives reinforce a united approach to responsibility. Developing self-awareness through feedback and reflection helps leaders recognize how their actions influence team dynamics, enabling them to lead with intention and purpose so that they can effectively address the root causes of conflict. By centering on shared purpose and striving for a lasting impact, C-Suite teams can transform conflicts into opportunities for growth and align on a vision that drives more than sustainable business success, but also measures progress in individuals, communities, and society as a whole.
Setting Clear Expectations
Overcoming key challenges in performance management is essential for effective leadership and sustainable business growth. Executives often struggle to balance diverse metrics, such as financial results versus customer satisfaction, and need to integrate these into a holistic performance view. Tailoring KPIs to industry specifics while retaining standardization helps maintain relevance across varied business contexts. Strategic alignment is crucial to ensure KPIs drive long-term goals. More needs to be done to avoid conflicting priorities, accountability, and ownership issues.
Optimal resource allocation, stakeholder buy-in, and the ability to measure experiential metrics for customer and employee health are also fundamental to addressing performance issues holistically. Additionally, aligning departmental KPIs can help prevent conflicting objectives and promote cross-functional cohesion, while balancing short-term and long-term targets for sustained growth. Addressing these challenges not only enhances performance management, but also fosters a healthier level of accountability and a more resilient, adaptive organizational culture, in which people feel a sense of belonging, purpose and alignment to a common good for their customers and communities.
Influencing C-Suite Decisions
To empower C-Suite executives to act on valuable customer experience and business insights, it’s crucial to overcome barriers that prevent impactful decision-making and strategic execution. By focusing on "Business Results" and "Value Creation," you align with the core priorities of executive leadership—financial performance and sustainable growth. Delivering measurable outcomes and clearly demonstrating the tangible value of your ideas establishes credibility and builds trust, showing that you understand and support executives' strategic goals. However, this approach to supporting executives is incomplete. We must also support the people we serve, our values, our mission, and our purpose.
To strengthen this alignment, employ a structured, consensus-building approach that prioritizes open communication and values diverse perspectives that go beyond the status quo of corporate performance management. By setting clear objectives, defining roles, and fostering transparent decision-making, you create a collaborative environment that minimizes misunderstandings, increases support for change, and drives commitment from the leadership team to embrace new ways of working together.
CEOs, in turn, can lead with bolder vision, more innovation, and proactive agility—pushing beyond limits to explore new markets, technologies, and models. By supporting executives in overcoming these barriers, organizations are better positioned to seize new opportunities, foster resilience, and secure a competitive advantage.
Conclusion
In conclusion, overcoming the entrenched focus on traditional performance metrics in favor of Experiential Metrics inclusion is crucial for businesses aiming to capture the full spectrum of customer insights and drive meaningful growth. Traditional KPIs, while providing stability and high-level financial insights, fail to reveal the underlying drivers of customer satisfaction and loyalty, which are essential in today’s fast-evolving market. Experiential Metrics, by capturing real-time data on emotions, behaviors, and perceptions, offer an actionable view into the "why" behind performance numbers, enabling proactive strategies that resonate emotionally with customers. However, to shift from a value-to-business focus to a genuinely customer-centric approach, leaders must recognize the limitations of status quo metrics and embrace new, purpose-driven measurement practices. As the demand for agility and customer focus grows, organizations that integrate Experiential Metrics will not only enhance customer loyalty but also achieve a sustainable competitive edge. This shift invites leaders to redefine growth beyond material accumulation, fostering an organizational culture rooted in collaboration, purpose, and positive, lasting impact.
Senior executives often rely on traditional metrics for their stability and alignment with shareholder expectations, offering a broad, if retrospective, view of business performance. Yet, as market dynamics evolve and customer demands grow complex, these lagging indicators fall short in capturing true business health and growth potential. With rapid advances in data, analytics, and AI, organizations now face an urgent need to embrace Experiential Metrics, which offer forward-looking insights that drive agile, customer-centric strategies. Adopting these metrics is no longer optional; it is essential for fostering deeper customer loyalty and achieving lasting financial success.
This organizational shift also calls for a deeper human transformation. Although human intelligence has led to remarkable advancements, it has also magnified traits like fear, greed, and ego, which drive personal and global conflicts, distorting perceptions and fostering dysfunction. This flawed mindset prioritizes self-interest over collective well-being, keeping individuals disconnected from their true purpose. For meaningful change, individuals must recognize and address this inner dysfunction, allowing a shift in perception that supports a more connected, purposeful approach to life and work.
Greg Parrott is The X-Mentor and publisher of The X-Interviews and The X-Metric.