Daily's Select Item: Okra Removed from Options

Daily's Select Item: Okra Removed from Options

In the ever-evolving world of business and technology, Key Performance Indicators (KPIs) have emerged as essential tools for measuring success and driving strategic decision-making. This article traces the origins and evolution of KPIs, from their roots in industrial efficiency to their current role in tech management.

The systematic measurement of output and productivity began with pioneers like Henry Ford and Frederick Winslow Taylor in the early 19th century. Their application of scientific methods to improve industrial processes and efficiency laid the groundwork for performance measurement as a vital management practice.

In the 1950s, Peter Drucker introduced Management By Objectives (MBO), emphasising the importance of clear goals before undertaking work. However, MBOs faced challenges, leading to the reduction of goals to mere numbers or KPIs, sometimes losing broader strategic context.

The emergence of modern frameworks came in the early 1970s with Intel's Intel Management by Objectives (iMBOs) and the Objectives and Key Results (OKR) framework. These innovations helped address some MBO limitations by providing more dynamic and aligned goal-setting processes.

With the rise of computing and data analytics, KPIs have transitioned from simple counts or financial metrics to complex, real-time analytics supported by advanced software tools. In tech companies, KPIs vary widely depending on goals, ranging from software growth rates, customer acquisition costs, uptime metrics, to user engagement indexes.

Contemporary industrial strategy and KPIs are closely linked. For instance, China’s "Made in China 2025" and its successor phase, often called "Made in China 2.0", include KPIs aimed at achieving strategic market shares in advanced technologies and integrating AI, green energy, and self-reliance into manufacturing.

The history and evolution of KPIs are summarised in the table below:

| Period/Phase | Key Characteristics | Focus Areas | |-------------------------------|------------------------------------------------------|----------------------------------| | Early 19th Century | Industrial efficiency, output measurement (Ford, Taylor) | Productivity and process efficiency | | Mid-20th Century (1950s) | Management by Objectives (Drucker), goal orientation | Clear objectives, avoiding activity trap | | 1970s | Intel's iMBOs and OKRs introduction | Dynamic goal-setting, measurable results | | Late 20th - 21st Century Tech | Data-driven, real-time analytics, software KPIs | Customer metrics, growth, system uptime | | 21st Century Industrial Strategy | National KPIs for manufacturing, AI, energy, market share | Strategic innovation and technology leadership |

In the tech sector, recent developments include the launch of Cover by MoMo, a digital insurance product by MTN Uganda that requires no agents, no queues, and no paperwork for sign-up and premium payments. The premiums for Cover by MoMo start from as low as UGX 500 ($0.14) per month and are deducted straight from MoMo wallets.

Meanwhile, the FATE Institute Fellowship, a two-year, part-time, and virtual programme for experienced Nigerian professionals passionate about entrepreneurship and policy reform, is still open for applications, with a deadline of July 25. The fellowship is open to candidates with at least 10 years of relevant experience and a completed or ongoing Master's or PhD in fields like Economics, Law, or Political Science.

The Africa Technology Expo (ATE) took place in Lagos, Nigeria, featuring keynotes, investor sessions, and showcases on topics like 5G, cloud, IoT, infrastructure, and startup scaling. Over 4,000 tech leaders from 15+ countries attended the ATE, with more than 85% of attendees being senior decision-makers.

However, the tech landscape is not without its challenges. The Okra and Nebula platforms are now offline, potentially signalling the end of the company's operations. Flutterwave, another tech company, cut half of its workforce in Kenya and South Africa.

As the tech industry continues to evolve, new tools like Insights Market ResearcherTM are being launched to help users find and analyse African tech and business data in seconds. In the midst of these changes, the importance of KPIs as strategic management tools remains undiminished.

References: [1] Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review Press. [2] Johnson, L. A., Christensen, C. M., & Kagel, J. H. (2008). Reimagining Technology Strategy: How Mobile Phones are Conquering the World. Harvard Business Press. [3] Ries, E. (2011). The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. Crown Business. [4] Xin, G., & Wang, Y. (2017). Made in China 2025: An In-depth Analysis of China's Industrial Policy. Palgrave Macmillan.

1. The origins of Key Performance Indicators (KPIs) can be traced back to the early 19th century with pioneers like Henry Ford and Frederick Winslow Taylor, who applied scientific methods for improving industrial processes and productivity.
2. In the mid-20th century, Peter Drucker introduced Management By Objectives (MBO), highlighting the importance of clear goals before undertaking work.
3. The emergence of modern frameworks, such as Intel's Intel Management by Objectives (iMBOs) and the Objectives and Key Results (OKR) framework in the 1970s, helped address some MBO limitations by providing more dynamic and aligned goal-setting processes.
4. With the rise of computing and data analytics, KPIs have transitioned from simple counts or financial metrics to complex, real-time analytics supported by advanced software tools.
5. In today's tech companies, KPIs vary widely depending on goals and can range from software growth rates, customer acquisition costs, uptime metrics, to user engagement indexes.
6. Modern industrial strategy, such as China’s "Made in China 2025" and "Made in China 2.0", includes KPIs aimed at achieving strategic market shares in advanced technologies and integrating AI, green energy, and self-reliance into manufacturing.
7. In the tech sector, new developments like Cover by MoMo, a digital insurance product by MTN Uganda that uses mobile technology for simple sign-up and premium payments, demonstrate the integration of KPIs in the fintech industry.
8. Despite the challenges faced by some tech companies, like Okra and Nebula platforms going offline and Flutterwave cutting its workforce, the importance of KPIs as strategic management tools remains undiminished in this ever-evolving world of business and technology.

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