Many firms emphasise the importance of performance but remain dissatisfied with their measurement systems. Most see their frameworks as inadequate, mainly due to the absence of strong non-financial indicators like customer service quality, R&D success, product quality, and employee engagement development. Key Performance Indicators (KPIs) are vital tools for operating managers, offering early warning signs of potential problems. They help managers identify actions to mitigate risks and boost performance. It’s important to distinguish between leading measures, like KPIs, which predict future performance, and lagging measures, such as Key Result Indicators (KRIs), which show past outcomes. Financial outcomes such as income statements, balance sheets, and market valuations are usually aggregated at the organizational or broad segment level. This can hide critical variations within different parts of the organization, creating a misleading picture where high-performing and underperforming segments are combined. To uncover accurate insights, organisations must shift from firm-centric to activity-centric performance measurement practices.