The Peril of Stale KPIs: Why Boards Miss Strategic Shifts

This article highlights a critical blind spot in corporate governance: the disconnect between evolving strategic objectives and static Key Performance Indicators (KPIs). It argues that while management and boards may operate within established governance frameworks, the inherent lag in updating measurement systems can mask significant strategic misalignments, leading to a false sense of security and delayed corrective action. For audit and assurance professionals, this underscores the importance of scrutinizing the relevance and timeliness of KPIs in relation to current strategic goals, rather than merely validating reported numbers.