Wednesday, November 8, 2023

g-f(2)1561 Managing the Future with AI-Driven KPIs: Governance Considerations


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genioux Fact post by Fernando MachucaClaude and Bing Chatbot

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As organizations integrate AI into business processes, effectively governing the development and use of key performance indicators (KPIs) is crucial. This genioux post will distill insights from an MIT Sloan Management Review article that provides a framework for governing smarter, more dynamic KPIs enhanced by AI. Establishing proper governance will help ensure KPIs stay strategically aligned and build trust.

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genioux GK Nugget:

"Effective KPI governance requires investing in data foundations, organizational structures, and building trust in AI-enhanced metrics." — Fernando Machuca and Claude

genioux Foundational Fact:

The article proposes a 3-pronged approach to governing AI-driven KPIs: 1) Build a solid data foundation with responsible data practices, 2) Establish organizational structures like specialized teams to oversee KPI evolution, and 3) Cultivate trust in KPIs enhanced by AI through transparency and communication. This governance enables the development of predictive, prescriptive KPIs that provide strategic advantages.

The 10 most relevant genioux Facts:

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  1. Legacy metrics can undermine strategy. KPIs must evolve along with business models.
  2. AI enables more dynamic KPIs with deeper insights and foresight.
  3. Quality data governance and discipline are prerequisites for smart KPIs.
  4. Cross-functional teams or performance offices often oversee KPI governance.
  5. Value maps can link KPIs to strategic outcomes across functions.
  6. Trust in AI-enhanced KPIs is built through training and transparency.
  7. Steering committees can guide continuous KPI improvement.
  8. Treat KPIs as assets that require investment to optimize.
  9. Involve boards in overseeing KPI governance as it connects to strategy.
  10. AI will expand the purpose and potential of KPIs as strategic decision aids.


This genioux post summarizes an MIT Sloan Management Review article emphasizing proper governance for developing and using AI-enhanced KPIs that remain strategically aligned over time. Key elements include data foundations, organizational structures, and trust-building. With diligent governance, AI-powered KPIs can provide unprecedented insights to empower decision makers.

The Story Behind g-f(2)1561

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Here is the story behind the title "Managing the Future with AI-Driven KPIs: Governance Considerations":

The goal with this title was to convey both the strategic importance and complexity behind governing key performance indicators (KPIs) enhanced by artificial intelligence.

The first part, "Managing the Future," aims to capture how AI-powered KPIs are not just backward-looking metrics, but can provide guidance and foresight for future decisions and outcomes. They are management tools for navigating uncertainty.

The middle, "with AI-Driven KPIs," highlights the transformative role of AI in making KPIs more dynamic, insightful, and predictive. This signals a shift from static metrics to intelligent metrics.

Finally, "Governance Considerations" indicates that effectively governing these AI-enhanced KPIs requires thoughtful leadership, planning, and a strategic approach. This involves addressing data, organizational, trust, and other considerations.

By bringing these elements together into an intriguing title, the goal is to grab the reader's interest in this important issue of governing smarter KPIs in our AI-enabled world. The title hints at the insights covered in the genioux fact post, while also remaining approachable to a business audience.


The GK Article

David Kiron, Michael Schrage, François Candelon, Shervin Khodabandeh, and Michael Chu, Governance for Smarter KPIs, MIT Sloan Management Review, November 6, 2023.

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The article "Governance for Smarter KPIs" from MIT Sloan Management Review discusses the importance of effective governance in managing Key Performance Indicators (KPIs)². The authors argue that good governance allows KPIs to evolve and stay aligned with strategic goals, thereby gaining the trust of workers and managers². The article emphasizes the need for KPIs to be flexible and adaptable to changing business environments and objectives². It suggests that a well-governed KPI system can lead to better decision-making, improved performance, and increased trust within the organization².

Source: Conversation with Bing, 11/8/2023

(1) Topics Data, AI, & Machine Learning - MIT Sloan Management Review.

(2) Articles - MIT Sloan Management Review.

(3) Data, AI, & Machine Learning - MIT Sloan Management Review.


David Kiron

David Kiron is the editorial director, research, of MIT Sloan Management Review and program lead for its Big Ideas research initiatives.

Michael Schrage

Michael Schrage is a research fellow with the MIT Sloan School of Management’s Initiative on the Digital Economy. His research, writing, and advisory work focuses on the behavioral economics of digital media, models, and metrics as strategic resources for managing innovation opportunity and risk.

François Candelon

François Candelon is a senior partner and managing director at Boston Consulting Group (BCG) and the global director of the BCG Henderson Institute, where his research focuses on the impact of technologies on business and society. He can be contacted at

Shervin Khodabandeh

Shervin Khodabandeh is a senior partner and managing director at BCG and the coleader of BCG’s AI business in North America. He is a leader in BCG X and has over 20 years of experience driving business impact from AI and digital. He can be contacted at

Michael Chu 

Michael Chu is a partner and associate director at BCG, where he focuses on applying AI and machine learning to business problems in commercial functions, including optimizing pricing, promotions, sales, and marketing. He can be reached at

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Source: Conversation with Bing, 11/8/2023

(1) g-f New World - Corporation.

(2) g-f(2)942 THE NEW WORLD (2/16/2022), The Story of the New World in a “g ....

(3) g-f(2)959 THE NEW WORLD (2/23/2022), geniouxfacts, The "g-f story" of ....

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Source: Conversation with Bing, 11/8/2023

(1) "genioux facts": The Building Blocks of Golden Knowledge (GK).

(2) “genioux facts”: The online program on "MASTERING THE BIG PICTURE OF ....

(3) “genioux facts”: The online program on "MASTERING THE BIG PICTURE OF ....

(4) genioux facts (g-f) - Corporation.

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genioux facts”: The online program on "MASTERING THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)1561, Fernando Machuca, Claude and Bing Chatbot, November 8, 2023, Corporation.

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